2026-VIL-980-DEL-CU
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CUSTOMS High Court Cases

Customs - Judicial Review of Settlement Commission Order - Challenge to Show Cause Notice on Ground of Limitation after Settlement - Petitioner filed application before Settlement Commission for settlement of proceedings arising from Show Cause Notice demanding duty along with interest. Instead of pursuing statutory appellate remedy against adjudication order petitioner consciously elected to invoke jurisdiction of Settlement Commission. Settlement Commission passed order determining duty liability at reduced amount - Settlement Commission directed jurisdictional Commissioner to verify and quantify interest liability and intimate Petitioner if further amount was payable. Subsequently, interest was quantified at higher amount. Petitioner challenged order of Settlement Commission seeking to set aside interest direction from remaining part of order and challenged validity of Show Cause Notice on ground of limitation – HELD - The scope of judicial review over orders of Settlement Commission is narrow and restricted to grounds such as contravention of statutory provisions, prejudice, fraud, bias or malice. Sufficiency of material placed before Settlement Commission and conclusions drawn therefrom ordinarily fall outside scope of judicial review - Once Petitioner consciously invoked jurisdiction of Settlement Commission and had settlement order passed, they cannot thereafter reopen validity of underlying Show Cause Notice by challenging it on ground of limitation. Petitioner cannot isolate direction regarding interest computation and under guise of challenging interest determination reopen validity of Show Cause Notice. Liability to pay interest is statutory consequence of liability to pay duty and does not stand extinguished merely because quantum of duty is settled – The mere fact that interest ultimately quantified is higher than amount initially computed by Petitioner cannot constitute ground for interference with Settlement Commission's order. Petitioner's challenge to Show Cause Notice on ground of limitation cannot be permitted to be indirectly raised by isolating direction relating to interest from settlement order as whole. Writ petition was dismissed as no ground existed to interfere with the order passed by the Settlement Commission
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