2008 (7) TMI 86 - HC - Customs

Petitioner challenging order passed by the Settlement Commission on ground that the penalty imposed is in gross violation of the principles of equality - Settlement Commission has been passed the impugned order granting immunity from prosecution and reduction in penalty for the benefit of petitioner and under the powers conferred by the Statute. The same being just and reasonable and based upon the facts and circumstances of the case, calls for no interference by HC - petition dismissed

Summary

Issues:
Challenge to penalty imposed by Settlement Commission on grounds of equality, fair play, and factual position.

Analysis:
The petitioner challenged the penalty imposed by the Settlement Commission, Customs and Central Excise, Mumbai, on the basis of inequality and violation of fair play. The petitioner argued that different parameters were applied in settling cases and that the Commission did not consider the petitioner's role in the matter while imposing the penalty. The Settlement Commission's order highlighted that the TPS license holders had violated import provisions, diverted duty-free goods to the local market, and fabricated documents. The mastermind, Minesh Shah, was also implicated, and penalties were imposed on the license holders and Shah. The Settlement Commission settled the customs duty for the petitioner at Rs. 1,46,75,646/- with an interest of Rs. 3,26,400/-, and imposed a penalty of Rs. 25,00,000/-. Immunity from prosecution was granted subject to payment of the penalty within 30 days. The court found the Settlement Commission's order to be just, reasonable, and within its statutory powers, based on the specific facts and circumstances of the case. Consequently, the writ petition challenging the penalty was dismissed.