2002 (9) TMI 477 - Commission - Customs

Summary

Issues Involved:
1. Admissibility of applications under Section 127B of the Customs Act, 1962.
2. Liability and settlement of duty demands.
3. Imposition of penalties and fines.
4. Interest on duty liability.
5. Immunity from prosecution.

Issue-Wise Detailed Analysis:

1. Admissibility of Applications under Section 127B of the Customs Act, 1962:
- The applications were filed by M/s. Amrit Laxmi Machine Works and Shri N.K. Brahmachari under Section 127B of the Customs Act, 1962.
- The applicant admitted duty liability of Rs. 15,94,565/- for the 3rd show cause notice dated 16-8-2000.
- The Commission observed that the applicant did not file any Bill of Entry for the 1st and 2nd show cause notices dated 22-6-2000 and 26-7-2000, thus not satisfying the conditions stipulated in clause (a) of Section 127B.
- The Commission allowed the application to proceed only in respect of the 3rd show cause notice where the Bill of Entry was filed by the applicant.

2. Liability and Settlement of Duty Demands:
- The 1st show cause notice demanded Rs. 65,78,106/- from several parties, including the applicant, but the duty was not admitted by the applicant as the imports were by M/s. Nippon Bearings (India).
- The 2nd show cause notice did not demand duty but proposed penalties for goods seized before clearance.
- The 3rd show cause notice demanded Rs. 15,94,565/- for 240 pcs. of bearings imported by M/s. Nippon but cleared in the name of the applicant.
- The applicant admitted the duty liability of Rs. 15,94,565/- and deposited the amount as directed by the Bombay High Court.

3. Imposition of Penalties and Fines:
- The Commission granted immunity from fines and penalties to the applicant, noting their cooperation and full disclosure during the proceedings.

4. Interest on Duty Liability:
- The import was made under Notification No. 80/95, dated 31-3-1995, which stipulated an interest rate of 24% per annum.
- The Commission, however, granted immunity from payment of interest in excess of 10%, directing the applicant to calculate and pay interest at the rate of 10% per annum from the date of import to the date of deposit with the High Court.

5. Immunity from Prosecution:
- The Commission granted immunity from prosecution under the Customs Act, 1962, and the Indian Penal Code for matters covered in the 3rd show cause notice dated 16-8-2000.
- Immunity was not granted for the other two show cause notices dated 22-6-2000 and 26-7-2000, which were not allowed to proceed.

Conclusion:
- The Commission settled the case for a duty of Rs. 15,94,565/- and granted immunity from fines, penalties, and prosecution for the 3rd show cause notice.
- The applicant was directed to pay interest at the rate of 10% per annum and to submit the calculation to the Revenue for verification.
- The order emphasized that it would be void if obtained by fraud or misrepresentation of facts.