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TMI Blog2022 (11) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... y if the benefit is not extended. Once an order of settlement is passed by the Settlement Commission, the entire dispute comes to an end and thereafter, the case cannot be adjudicated qua the other co-noticees - In this case, the Settlement Commission found that the importer had made true and full disclosure of all the facts relating to imported goods. The Commission also took into consideration the additional amount of Customs duty and interest paid by the importer. Accordingly, the importer was granted immunity from prosecution, fine and penalty. If the proceedings against the importer has thus come to an end, it will be discriminatory and unfair to continue the proceedings as against the CHA in relation to the very same transaction. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es are imported by misdeclaring the country of origin to evade antidumping duty, the office of the Directorate of Revenue Intelligence conducted a raid in the office premises of the importer. A case came to be registered for undervaluation against the importer. 4 . A show cause notice was issued to the importer and also to the appellant. They were asked to show cause as to why penalty should not be imposed under Sections 112(a) and 114A of the Customs Act for undervaluation and thereby rendering the goods liable to confiscation. 5 . The matter was ultimately decided by the Additional Commissioner of Customs and through order dated 31.01.2011, penalty was imposed against the appellant for conniving with the importer in misdeclaring t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from prosecution, fine and penalty, will also enure to the benefit of the appellant and consequently, the appellant will not be liable to pay the penalty? 9 . The main ground on which the penalty was imposed against the appellant was that the appellant as CHA has abetted the importer to undervalue the goods and that the appellant had prior knowledge as to the actual value of the imported goods. To come to this conclusion, the Additional Commissioner of Customs as well as the Commissioner (Appeals) relied upon the documents that were seized from the importer which contained two sets of invoices for the same goods. The authority also came to a conclusion that the CHA, having knowledge of undervaluation of goods did not properly guide the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness concern. Therefore the plea of person fails when penalties were imposed against two different breach of law alleged. 6.When the magnitude of the penalty is looked into there appears no further consideration to be made since the appellant through e-mail transaction has stepped up into the shoe to benefit his client importer. Appellant's involvement was consciously and knowingly which cannot be ruled out. Law is well settled that fraud is a nullity and should get burial death. Therefore, any interference to the appellate order shall be a mockery for which the appeal is dismissed. 12 . It is clear from the above that the Tribunal did not consider any of the grounds raised by the appellant including the order passed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtracted hereunder : 14. We have heard the parties. In our view, a reading of the Kar Vivad Samadhan Scheme (Removal of Difficulties) Order shows that where a declaration had been made in respect of a tax arrear and where in respect of the same matter a show cause notice had also been issued to any other person, then the settlement in favour of the declarant has to be deemed to be full and final in respect of other persons on whom show cause notices had been issued. It is settled law that when an Appeal is pending there is no finality to the proceedings. The proceedings are then deemed to be continuing. Undoubtedly, at one place the Kar Vivad Samadhan Scheme (Removal of Difficulties) Order seems does state that the show cause notice sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... An interpretation which leads to discrimination must be avoided. An interpretation, as suggested by Mr. Ganesh, would also be against the object of the Kar Vivad Samadhan Scheme (Removal of Difficulties) Order. It is therefore not possible to accept the submissions of Mr.Ganesh. In our view the reasoning given by the High Court of Kerala is correct and needs to be upheld. 16 . It is clear from the above that where the benefit has been granted under the Samadhan Scheme to the main party, that benefit must also enure in favour of the other co-noticees and it would be unreasonable and discriminatory if the benefit is not extended. 17 . Once an order of settlement is passed by the Settlement Commission, the entire dispute comes to an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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