KESAR ENTERPRISES Vs. ADDITIONAL DIRECTOR GENERAL

JUDGEMENT

(1.) We have heard the learned counsel for the parties in these writ petitions. All the writ petitions pertain to the order dated 20-12-2007 passed by the Customs and Central Excise Settlement Commission (Principal Bench), New Delhi in respect of Settlement Applications Nos. 1219 to 1223/2006, 1513, 1515, 1520-1523, 1556, 1559, 1620-1628, 1630-1634, 1662-1667, 1679-1690, 1696, 1791-1792, 1826, 2046, 2053, 2069. The petition filed by the Directorate of Revenue Intelligence has raised the grievance only with regard to the immunity from prosecution and with regard to certain penalties. Insofar as the petition filed by Kesar Enterprises and Another is concerned that pertains to the liability of Kesar Enterprises and Another to make payment of the penalty imposed on the petitioner in W.P. (Crl.) No. 1671/2011. The petitioner in W.P. (Crl.) No. 1671/2011 has filed the petition raising certain issues with regard to release of seven cars and the payment of interest. After having heard the counsel for the parties, we are first of all of the view that the Settlement Commission was well within its jurisdiction to examine the matter in detail and to pass the orders that it did so as to bring about a settlement. In doing so, the Settlement Commission was also well within its powers to grant immunity from prosecution. It must be reiterated that this Court in exercise of its jurisdiction under Article 226 of the Constitution does not sit as a Court of appeal over the orders passed by the Settlement Commission. In these circumstances, we do not wish to interfere with the directions given by the Settlement Commission by virtue of the impugned order. This includes the direction with regard to immunity from prosecution. It is also evident that the Settlement Commission when it finally settles the matter does so subject to the specific conditions set out in the provisions of the Customs Act, 1962 and if there is any false declaration found out at a subsequent date then the entire order can be reopened in terms of Section 127(J) of the said Act.

(2.) Secondly, we are of the view that the directions given by the Settlement Commission have to be complied with, otherwise, the entire settlement would fall apart and all matters would have to be re-opened. It is in this backdrop that the learned counsel appearing for the petitioner in W.P. (Crl.) No. 1671/2011 has stated that it shall comply with the directions with regard to the provisional release of the seven vehicles as indicated in paragraph 27(f) and the other sub-paragraphs mentioned therein of the impugned order. Insofar as the payment of Rs. 71,40,961/- towards interest' is concerned, the petitioner in W.P. (Crl.) No. 1671/2011 shall pay the same within four weeks. Insofar as plea of interest on interest raised on behalf of the Directorate of Revenue Intelligence is concerned, we are not impressed by the same inasmuch as the seven vehicles have been retained by the Directorate of Revenue Intelligence. Therefore, there is no question of payment of interest on interest and the payment of interest to the extent of Rs. 71,40,961/- would suffice. The said petitioner would, however, have to comply with any other directions which have been given by the Settlement Commission. With regard to the payment of Rs. 18,09,083/- which Kesar Enterprises was required to make to the Directorate of Revenue Intelligence and which has specifically been stayed by an order of this Court, the learned counsel appearing for the petitioner in W.P. (Crl.) 1671/2011 states that the said amount may be paid by Kesar Enterprises to the Directorate of Revenue Intelligence and that on said payment being made he would reimburse Kesar Enterprises within a week. It is, therefore, directed that Kesar Enterprises shall make a fresh payment of Rs. 18,09,083/- to the Directorate of Revenue Intelligence by virtue of depositing the same along with a TR-6 challan. On such payment being made, the petitioner in W.P. (Crl.) 1671/2011 shall make reimbursement to Kesar Enterprises within a week of its intimation by Kesar Enterprises. In view of the aforesaid directions all the above writ petitions stand disposed of. The interim orders stand vacated. All the pending applications also stand disposed of.