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The Central Board of Excise & Customs on the basis of decision of Hon’ble Delhi High Court in case of Addl. Commissioner of Customs vs Shri Ram Niwas verma [WP(C)No.7363/2014 CM No.17221/2014] dated 25th August 2015 has directed to deparmental officers vide instruction no. F.No. 275/46/2015-CX.8A dated 01-10-2015 that Settlement Commission cannot admit cases related to Smuggling of Goods specified under section 123 of the customs Act, 1962 which include Gold. If the settlement Commission admits any such matter for settlement the jurisdictional field formation should challenge the same in High Court by way of Writ at the stage of admission.
The relevant para of judgment of Hon’ble Delhi High Court in case Addl. Commissioner of Customs vs Shri Ram Niwas verma is as under:
Para 7
“7. On a plain reading of the third proviso to Section 127B(1) of the said Act, it is evident that no application for settlement can be made if it relates to goods to which Section 123 applies. Section 123 sub-section (2) specifically provides that the said Section applies to, inter alia, gold. It is, therefore, clear that when the two provisions are read together, no application under Section 127B(1) can be made in relation to gold. This case clearly pertains to gold. The respondent made an application, nevertheless, to the Settlement Commission which has entertained the same and has also rejected the plea raised by the Revenue that it did not have jurisdiction to entertain such an application. We agree with the submission made by the learned counsel for the Revenue that the Settlement Commission did not have the jurisdiction to entertain such an application as there was a complete bar provided in the third proviso to Section 127B(1) read with Section 123 of the said Act.”
Para 9
“9. For all these reasons, the impugned order passed by the Settlement Commission is without jurisdiction. The same is set aside. The writ petition is allowed.”
Download the instruction no. F.No. 275/46/2015-CX.8A dated 01-10-2015 and judgment of Addl. Commissioner of Customs vs Shri Ram Niwas verma:
