2006 (7) TMI 566 - Commission - Customs

Summary

Issues:
1. Settlement application under Section 127B of the Customs Act, 1962.
2. Jurisdiction of the Settlement Commission.
3. Extension of time for payment due to financial constraints.
4. Compliance with directions of the Bench.
5. Failure to attend hearings or communicate reasons for absence.
6. Allegations of dilatory tactics and non-cooperation by the applicant.
7. Decision to send the case back to the proper officer of customs.

Analysis:

1. The case involves an application filed by M/s. Mesh Trans Gears (P) Limited under Section 127B of the Customs Act, 1962, for settlement of proceedings initiated by a Show Cause Notice demanding duty payment, penalty, and interest for non-fulfillment of export obligations under an EPCG License.

2. The Settlement Commission held that the adjudication by the Commissioner while the applicant intended to approach the Settlement Commission was against natural justice. Citing the Gabrlel India case, the Commission asserted its jurisdiction and directed the applicant to pay the admitted amount within a specified period, allowing adjustment of Bank Guarantee and advance payment.

3. Due to financial constraints, the applicant sought an extension for payment, which was granted in three monthly installments. Subsequently, another request for more time was made, leading to a final directive to pay the entire differential duty by a specific date.

4. Despite multiple opportunities and extensions granted by the Bench, the applicant failed to comply with payment directions, leading to concerns about non-compliance with the settlement terms.

5. During a hearing, neither the applicant's representative nor advocate appeared, nor was any communication received for the absence. The Revenue representative highlighted the lack of compliance and the filing of a Writ Petition by another entity related to machinery use.

6. The Bench noted the applicant's history of non-compliance, delays, and failure to attend hearings or communicate reasons for non-appearance. Allegations of dilatory tactics and non-cooperation were raised, indicating a lack of serious intention to fulfill duty liabilities despite opportunities for installment payments.

7. Ultimately, due to the applicant's lack of cooperation and non-compliance, the Settlement Commission decided to send the case back to the customs officer for disposal as if no settlement application had been made, under Section 127-I(1) of the Customs Act, 1962.