2016 (11) TMI 1428 - HC - Customs

Refund of excess amount - petitioner s grievance is that despite the final order of the Settlement Commission, dated 30-4-2014, finally deciding the SCN No. 30/2013, dated 24-5-2013 and the matters covered therein, the respondents have not so far taken any action towards refund of the excess amounts lying and deposited with them - Held that - In view of the finality of the Settlement Commission s order, which cannot be appealed against, the respondents are hereby directed to take appropriate consequential action and pass orders to refund the excess amounts paid (i.e. differential between the payment or deposit made at the time of filing of the settlement application and the duty liability, as finally determined by the Commission in its order of 30-4-2014) as well as pass a separate order discharging the bank guarantees issued in favor of the Commissioner of Customs - petition allowed - decided in favor of petitioner.

Summary

Issues:
Refund of excess amounts and discharge of bank guarantees post Settlement Commission's final order.

Analysis:
The petitioner's grievance was the non-action by the respondents regarding the refund of excess amounts and the bank guarantees post the Settlement Commission's final order. The Settlement Commission's order held the applicants liable for misdeclaration of goods to evade customs duty and import counterfeit goods. The duty amount was settled at ?25,69,617, which was already deposited by the applicant. An interest amount of ?1,81,657 was also settled. Penalties of ?50,000 and ?1,00,000 were imposed on the applicant and co-applicant no. 4, respectively, with immunity granted to other co-applicants. A fine of ?50,000 was imposed on seized goods, and a deposit of ?25,00,000 was made to the Revenue. All dues were allowed to be adjusted against this deposit, with a directive to return any balance amount within 15 days. Immunity from prosecution was granted to all applicants and co-applicants. The Settlement Commission's order was final and could not be appealed against.

The High Court directed the respondents to take appropriate action as per the Settlement Commission's final order. This included refunding the excess amounts paid and discharging the bank guarantees within three weeks. The writ petition was allowed, and a copy of the order was provided to the counsel for both parties. The Court emphasized the finality of the Settlement Commission's order and the necessity for the respondents to comply with the directives promptly. The judgment highlighted the importance of honoring the Settlement Commission's decisions and ensuring timely refunds and discharge of bank guarantees as per the settled terms and conditions.