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2019 (11) TMI 908 - HC - CustomsImposition of penalty by the Settlement Commission - Rejection of rectification application - error apparent on the face of record or not - misdescription and undervaluation of imported goods - signage materials - evasion of duty - Section 127B of the Customs Act, 1962 - HELD THAT:- Observing that, the petitioner had fully and truly disclosed it’s liability, and had deposited the same and cooperated with the proceedings, the Settlement Commission held that the petitioner was entitled to have the case settled, under Section 127C(5) of the Customs Act. Accordingly, the case was settled. Imposition of penalty - only contention, seriously advanced by Mr. A.K. Seth, appearing for the petitioner, was that the decision, of the Settlement Commission, to award a penalty to the petitioner, was vitiated, as it had been taken on the basis of an erroneous finding, regarding the petitioner having “consciously chosen to spread out the imports through the various Ports, with a view to test his chances of success in evasion of duty at different ports” - HELD THAT:- The decision, of the Settlement Commission, to award penalty, is not based on any particular finding, but is premised on the overall merits of the case. The Settlement Commission has chosen to pentfurcate the total quantum of penalty, depending on the quantum of imports effected at different ports and, in doing so, we do not see that the Settlement Commission committed any “rectifiable” error. It cannot be said that the decision, of the Settlement Commission, to impose penalty on the petitioner, suffers from any error apparent on the face of the record. Consequently, the impugned decision, of the Settlement Commission, to reject the petitioner’s application for rectification, too, does not suffer from any such infirmity, as would call for interference by this Court, in exercise of its writ jurisdiction. Immunity from penalty can be granted, by the Settlement Commission, either in whole or in part. The Show Cause Notice, dated 24th March, 2017 supra, proposed imposition of penalty, on the petitioner, under Sections 112 and 114AA of the Customs Act. The quantum of penalty, as awarded by the Settlement Commission, is only 10% of the duty evaded by the petitioner, and is, therefore, much less than the penalty which the petitioner might have had to suffer, had the matter proceeded to adjudication. It cannot, therefore, be said that the penalty imposed, by the Settlement Commission, on the petitioner, was unreasonably high - there is no substance in the writ petition filed by the petitioner. It is clarified that applications under Section 127B(5) have to be heard in open Court by the Settlement Commission, and orders, disposing of such applications, are required to be reasoned. Petition dismissed.
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