Home Case Index All Cases Customs Customs + HC Customs - 2016 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 674 - HC - CustomsValidity of order of Settlement Commission – rejection of settlement application - Section 127B of the Customs Act – export of ferro silicon – goods of Indian origin – DEPB license obtained by the petitioner to avail benefit of free import of goods – some of the license sold for valuable consideration – later found that goods were of Bhutanese origin and are not entitled to DEPB benefit – demand of duty and imposition of penalty on petitioner for wrong availment of DEPB license – duty discharged by petitioner and approach to settlement commission for waiver of penalty – rejection of application by settlement commission on the ground that the petitioner has discharged the entire liability himself, on behalf of the importers also to who he sold DEPB license – Held that: - the ground on which the Settlement Commission rejected the application for settlement under Section 127B of the Customs Act, is not sustainable at law. The department is concerned with the recovery of the import duty which was not paid by the concerned importers on the strength of the DEPB licenses. Since it is now admitted that the petitioner was not entitled to the benefit of the DEPB licenses all that the department should look forward to is recovery of the amount of ₹ 3,12,60,465/-. Who pays the money should not matter to the department. One cannot lose sight of the fact that the importers purchased the DEPB license from the petitioner for valuable consideration. Hence it is only fair that the petitioner pays the entire import duty – rejection of application by settlement commission not correct. Matter remanded to settlement commission for fresh adjudication without going to the merits of the case – writ application disposed off – decided in favor of petitioner.
|