2015 (9) TMI 717 - HC - Customs

Imposing condition on provisional release Payment of interest - Whether order of settlement commission imposing condition on release of goods and payment of interest was justified Held that - Settlement Commission was well within its jurisdiction to examine matter in detail and to pass orders that it did so as to bring about settlement Therefore no requirement to interfare with directions given by Settlement Commission by virtue of impugned order Also directions given by Settlement Commission have to be complied with, otherwise, entire settlement would fall apart and all matters would have to be re-opened Petitioner to comply with directions with regard to provisional release of seven vehicles In view of aforesaid directions all writ petitions stand disposed of.

Summary

Issues:
1. Jurisdiction of the Settlement Commission to grant immunity from prosecution and penalties.
2. Compliance with the directions of the Settlement Commission regarding settlement terms.
3. Payment of interest and penalties by the concerned parties.

Analysis:

1. The judgment pertains to writ petitions challenging an order passed by the Customs and Central Excise Settlement Commission. The Settlement Commission was found to be within its jurisdiction to examine the matter thoroughly and grant immunity from prosecution. The court clarified that it does not act as an appellate authority over the Settlement Commission's orders. The Settlement Commission's power to grant immunity from prosecution was upheld, and any false declaration could lead to the reopening of the entire matter under Section 127(J) of the Customs Act, 1962.

2. The court emphasized the importance of complying with the Settlement Commission's directions to ensure the settlement's validity. Non-compliance could result in the reopening of all matters. Specific directions were given regarding the provisional release of vehicles and the payment of interest. The petitioner in one of the writ petitions agreed to comply with the directions for the release of vehicles and the payment of interest amounting to Rs. 71,40,961 within four weeks. The court dismissed the plea for interest on interest raised by the Directorate of Revenue Intelligence, stating that the payment of interest as directed would suffice.

3. Regarding the payment of Rs. 18,09,083 by Kesar Enterprises to the Directorate of Revenue Intelligence, which was stayed by a court order, it was directed that Kesar Enterprises should make the payment along with a TR-6 challan. Upon payment, the petitioner in one of the writ petitions was instructed to reimburse Kesar Enterprises within a week of intimation. Following these directions, all the writ petitions were disposed of, interim orders were vacated, and pending applications were also resolved.