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Validity of order by Customs and Central Excise Settlement Commission under Section 127B of the Customs Act, dismissal of application under Section 154 of the Customs Act seeking rectification of the earlier order. Analysis: The petitioner, a sole proprietorship involved in breeding racehorses, imported a Stallion named 'Black Cash' for racing purposes. Disputes arose regarding the import value of 'Black Cash' leading to a show cause notice alleging undervalued invoicing. The petitioner applied for settlement under Section 127B of the Customs Act, but the application was rejected by the Commission for not making a full and true disclosure. The petitioner's subsequent request for rectification was also dismissed by the Commission. The petitioner challenged these orders in a writ petition before the High Court. The petitioner argued that the Commission violated mandatory provisions by not providing a proper hearing as required under Section 127C of the Customs Act. The petitioner contended that clarifications were sought but a full hearing was not granted after the parties submitted the required explanations and documents. The petitioner also proposed to pay the differential duty if granted immunity against penalty and interest. The High Court found merit in the petitioner's arguments and held that the Commission failed to provide a meaningful hearing post the submission of clarifications, causing prejudice to the petitioner. Additionally, the High Court noted a significant change in the declared value of the Stallion and emphasized the need for the Commission to reexamine the matter. While the petitioner offered to pay the revised duty amount, the Court deemed it appropriate for the Commission to decide on granting immunity based on the revised value. The Court refrained from directly intervening in the matter and remitted it back to the Commission for a fresh hearing and disposal in accordance with the law, emphasizing the importance of due process and proper consideration of the revised value. In conclusion, the High Court partially allowed the writ petition, quashing the previous orders and remitting the matter to the Commission for a fresh hearing. The Court highlighted the necessity of a full and fair hearing post-clarifications and the Commission's obligation to reconsider the case in light of the revised value presented by the petitioner.
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