MAHINDRA & MAHINDRA LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard. Rule. Rule made returnable forthwith. By consent of the parties, all the petitions are taken up for final hearing.

(2.) The short question raised in these Writ Petitions is, whether the Settlement Commission was justified in levying penalty and directing the Petitioners to pay interest @ 10% for the entire amount of customs duty settled at Rs. 1,41,53,468/-

(3.) Before the Settlement Commission, the petitioners had contended that in the absence of any specific provision under the Act, the penalty and interest cannot be levied upon the petitioner. However, the Settlement Commission without assigning any reasons has imposed the penalty of Rs. 5 lakhs and directed payment of interest @ 10% on the entire amount of customs duty settled by the Settlement Commission.