HONEYCOM SYNERGIES Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) The proceedings which were commenced, against the petitioner, vide Show Cause Notice No. 09/2017, dated 24th March, 2017, issued by the Directorate of Revenue Intelligence (DRI), stands settled, by Final Order, dated 1st November, 2018, passed by the Customs, Central Excise and Service Tax Settlement Commission (hereinafter referred to as "the Settlement Commission") in Settlement Application No. 5580/2018, subject to appropriation of 84,28,058/-, deposited by the petitioner towards Customs Duty escaped on imports effected by it, and 22,12,969/-, towards interest on the said amount of duty, and payment of penalty, by the petitioner, of 8,54,000/-. Aggrieved by the imposition of penalty on it, the petitioner filed a Rectification Application, before the Settlement Commission, which stands rejected by communication, dated 18th February, 2019, addressed to the petitioner by the Senior Investigating Officer (SIO), communicating the decision, of the Settlement Commission, to reject the Rectification Application as, in its view, there was no error apparent in the Order dated 1st November, 2018.

(2.) The petitioner, by means of this writ petition, calls into question the aforesaid decision of the Settlement Commission, to reject the Rectification Application filed by the petitioner, as communicated to the petitioner vide letter dated 18th February, 2019 supra, and prays, further, that the Settlement Commission be directed to reconsider the Rectification Application filed by the petitioner.

(3.) Acting on the basis of information, regarding evasion of Customs duty on import of signage materials from China and Taiwan, by misdescription and undervaluation, by various importers including M/s. Taneja Technocom, a proprietary concern of Manish Taneja, a search was conducted, by a team of the DRI, at the premises of M/s Taneja Technocom, on 3rd October, 2016. Electronic goods, valued at 44,20,365/-, were found therein which, on further investigation, were found to have been imported in the name of the petitioner, which is also a proprietary concern of Puneet Taneja, brother of Manish Taneja. Following thereupon, search was conducted, by the DRI team, at the office-cum-godown of the petitioner, where goods, of which the declared value was 1,20,34,534/-, were found and subjected to investigation, as undervaluation, thereof, was suspected. During investigation, the petitioner deposited 26 lakhs, towards partial payment of duty liability on undervalued imports, effected by it.