2009 (7) TMI 990 - Commission - Customs

Summary

The judgment delivered by the Settlement Commission, Customs and Central Excise in 2009 involved the settlement of a case of undervaluation related to the importation of Betel Nuts by M/s. Dinesh Tobacco Industries. The applicant and co-applicants admitted to undervaluing the imported goods, leading to a differential duty amount of Rs. 3,78,67,868, which was paid along with interest. The case was settled under Section 127B of the Customs Act, 1962, with the applicant requesting immunity from fines, penalties, and prosecution. The Settlement Commission granted immunity from penalties exceeding Rs. 30,00,000 to the main applicant and immunity from penalties to the co-applicants. Immunity from prosecution was granted subject to the penalty payment within 30 days. The order of settlement would be void if obtained through fraud or misrepresentation. The terms and conditions of settlement were outlined under sub-section (5) of Section 127C of the Act, with attention drawn to the provisions of sub-sections (2) and (3) of Section 127H. All parties concerned were duly informed of the settlement terms. The judgment highlighted the prompt payment of duty and interest, while acknowledging the need to balance immunity with the severity of the evasion and the Revenue Department's concerns. The adjustment of Rs. 10 lakhs deposited by the applicant was allowed, despite opposition from the Revenue, as both entities were part of the same family concerns. The Settlement Commission carefully considered the circumstances before granting the settlement terms and immunities.