HAZEL MERCANTILE LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) RULE . Rule is made returnable forthwith. By consent, the writ petition is taken up for final hearing. This writ petition is filed to challenge the final order of the Settlement Commission dated 16th January 2012, whereby the case has been relegated to the adjudicating authority.

(2.) IN the present case, by a show -cause notice dated 23rd February 2011 the petitioner was called upon to show cause as to why the petitioner and the foreign supplier should not be treated as related companies and why the invoice value should not be enhanced and differential duty amounting to Rs. 60.45 lakhs should not be recovered from the petitioner.

(3.) IT is the case of the petitioner that when the entire amount claimed in the show -cause notice has been offered to tax, the Settlement Commission could not have recorded that the petitioner has not cooperated. Counsel for the Revenue is unable to point out as to what cooperation was not extended by the petitioner before the Settlement Commission. Since the petitioner has admittedly paid the entire duty liability of Rs. 60.45 lakhs claimed by the Revenue and has also offered to pay interest amounting to Rs. 5.28 lakhs, in our opinion, the decision of the Settlement Commission that the petitioner has not cooperated in the proceedings cannot be sustained. Counsel for the petitioner states that the petitioner is ready and willing to deposit the interest amount of Rs. 5.28 lakhs with the respondents within one week from today.