ARORA FIBERS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner imported capital goods for the purpose of processing polyester waste. A show cause notices dated 31.7.1998 and 7.8.1998 were served on the petitioner. Both the show cause notices called upon the petitioner to show cause why penalty should not be imposed. The petitioner filed a reply to both the notices and showed cause.

(2.) On 29.3.2000 petitioner filed a settlement application being No. 9 of 2000, under section 127-B of the Customs Act, 1962. In this application, the petitioner admitted the duty liability as Rs. 1,23,81,895/-. The petitioner prayed for inter alia (1) waiver of interest, (2) release of two bank guarantees dated 7.9.1994 and 23.1.1995 deposited with the DGFT Mumbai, (3) Permission to pay duty liability in installments, (4) to grant immunity from imposition of any fine and penalty, (5) immunity from prosecution and (6) permission to pay C.V.D. Separately.

(3.) The application was fixed for admission on 10.5.2000. The petitioner submitted that there was error in calculation of actual amount of duty payable and considering the export obligation performed, the obligation for payment of duty would be Rs. 1,16,49,093/-. Respondent No. 3 on 8.5.2000 submitted report as required under section 127-C(1) of the Customs Act, 1962 on the application filed by the petitioner. The report sated that the application filed by the petitioner was liable to be rejected under section 127-C, since it did not disclose any new duty liability which was not known earlier. It was also sated that the petitioners request for the waiver of interest was not acceptable and further the Act did not allow any power on the Commissioner of Customs to allow payment of duty in installments. The report did not include any demand by way of penalty. By an order dated 8.6.2000 the respondent No. 2 allowed the application filed by the petitioner, to be proceeded with and directed the petitioner to pay Rs. 20 lacs., within one month from the date of receipt of the order. Petitioner paid the sum of Rs. 20 lacs., on 30.6.2000.