Indian Tax Solution

Settlement Commission

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2004-ITS-010-SETTLEMENT-IN RE : MAHALAKSHMI SPINNERS LTD. , dated 7-6-2004

Commission had jurisdiction to deal with the matter - Sections 127A and 127B of Customs Act, 1962. [2004 (165) E.L.T. 499 (Guj.) followed].

2009-ITS-001-SETTLEMENT-IN RE : D.C. TRADING , dated 22-7-2009

 Applicant accepted the allegation of underinvoicing which has gone on for a period of over three years - Applicant discharged the liability of entire differential duty along with interest - Allegation of underinvoicing not refuted - Adjustment of Rs. Ten lakhs deposited in the account of one of the co-applicants allowed although they are separate entities but they are a part of same family concerns/firms - Allowing such an adjustment would cause no harm to Revenue’s case

2009-ITS-006-SETTLEMENT-IN RE : DINESH TOBACCO INDUSTRIES , dated 22-7-2009

Under invoicing carried on for over three years and duty evasion running into few crores of rupees - In such case complete immunity from penalty cannot be granted even though entire duty along with interest was paid promptly - Sections 127C and 127H of Customs Act, 1962.

2009-ITS-002-SETTLEMENT-IN RE : ASHOK KUMAR JAIN , dated 6-5-2009

Wrist watches notified under Section 123 of Customs Act, 1962 and imported as baggage in present case - Value of goods declared as Rs. 12,000/- in Disembarkation Card and bill of entry not filed - Show cause notice invokes both demand of additional duty and re-determination of value and covered under short levy on account of undervaluation - Disembarkation Card not requires declaration of description and quantity of goods brought as baggage and hence, baggage cases covered under category of undervaluation - Impugned matter relating case of levy, assessment and collection of customs duty - All cases of non-levy are cases of short-levy

2009-ITS-004-SETTLEMENT-IN RE : ALCHEM INTERNATIONAL LTD., dated 4-5-2009

Sub-rule (3) of Rule 6 of Cenvat Credit Rules, 2004 not authorizes collection of new levy as percentage of value of exempted goods where records enable computation of Cenvat credit taken in respect of exempted goods - Provisions not intended as penal measure if assessee opts for non-maintenance of separate accounts - Tribunal decision in 2008 (228) E.L.T. 452 (Tribunal) holding requirement to pay amount as per rule ceases once credit reversed, applicable - Full and true disclosure made - Immunity from prosecution granted and duty, interest and penalty quantified and settled

2009-ITS-003-SETTLEMENT-IN RE : MANSOOR ARTS , dated 29-4-2009

Import of goods using other’s IEC - Undervaluation accepted and duty deposited more than amounts demanded in show cause notices - Voluntary acceptance of higher duty liability to be rejected in view of hazy valuation scenario and instant acceptance by applicants - Evidence to support reduced duty liability in one instance, not produced and such acceptance of reduced liability rejected - Goods liable to confiscation and fine - Complete immunity from fine in lieu of confiscation granted considering demurrage

2009-ITS-005-SETTLEMENT-IN RE : ASHWANI TOBACCO COMPANY PVT. LTD. , dated 29-4-2009

On plea of applicant that a 41 kg. bag was containing 3700 pouches, the Bench would like to clarify that so far as the bags weighing 41 kgs. are concerned, the SCN figure of 5200 pouches of 7 gms. was not given a go bye by the Commission. In fact, it was only in order to simplify the calculations that the figures were converted into 3700 pouches of 10 gms. on the pro-rata basis. Arithmetically, this did result in extra addition of 6 kgs. per bag which was ignored so as to round off the figure.

2009-ITS-007-SETTLEMENT-IN RE : SUNIL GODHWANI , dated 4-3-2009

Applicant is a co-borrower who circumvented the two years ban on sale of car and took the car into his possession and use - Applicant would not become a co-borrower with a total stranger and would even pay the loan amount - Applicant had the knowledge about illegal import of said car and its liability to confiscation

2008-ITS-001-SETTLEMENT-IN RE : B.N. THAKKAR & CO. , dated 23-6-2008

Immunity from penalty - No criminal complaint of fraud and cheating lodged by applicant with appropriate agency against alleged executor of fraud - Applicant cannot be acquitted entirely of his responsibility for damage caused by fraud

2008-ITS-003-SETTLEMENT-IN RE : MANISH KALVADIYA , dated 20-12-2007

Applications pending from the year 2004 need to be heard earliest, especially further hearings are also required before February 2008

2007-ITS-056-SETTLEMENT-IN RE : SARFARAZ DHANANI , dated 8-10-2007

Application therefor - Admission when filed by COFEPOSA absconder - Provisions of Settlement Commission in Customs Act, 1962 do not bar application from COFEPOSA detenue or absconder - Exclusion clause not provided in provisions against admission of cases concerning persons ibid

2008-ITS-007-SETTLEMENT-IN RE : MERCANTILE IMPEX , dated 28-9-2007

Settlement Application was not maintainable by virtue of third proviso of Section 127C(1) of Customs Act, 1962 - Plea of importer that goods were seized prior to clearance rejected as if they had been cleared then it would not have been either detected or if detected, seized - Sections 2(3a), 123 and 127B ibid.

2008-ITS-008-SETTLEMENT-IN RE : VINOD KUMAR GARG , dated 26-9-2007

 Application for - Co-noticee buying illicitly imported goods is ‘any other person’ entitled to seek settlement - It was more so as show cause notice had demanded duty from him jointly and severally - Application admitted as he had made true and full disclosure of duty liability, and paid up same

2008-ITS-002-SETTLEMENT-IN RE : SANA INTERNATIONAL , dated 11-9-2007

Settlement application by absconder under COFEPOSA Act, 1974 - Admission - No legal bar - Application admitted for settlement

2007-ITS-001-SETTLEMENT-IN RE : UNIVERSAL EXPORTS , dated 11-9-2007

No legal bar for admission of an application from a COFEPOSA detenue or an absconder - An applicant’s so called abscondence cannot be a bar to entertain his application by the Settlement Commission


Editor's Column

Unexpectedly high transitional input tax credit claims of Rs 65,000 crore by businesses is now a huge headache for the Govt

With the deadline for filing Goods and Services Tax (GST) returns for August coming to an end in less than 48 hours, only 8 lakh taxpayers have filed their GSTR-3B- a short summary return, at the end of Monday, said sources famili ...