Page 164 - ELT_15th June 2020_VOL 372_Part 6th

842 EXCISE LAW TIMES [ Vol. 372

that the cigarettes have been smuggled to India, they were seized.
Subsequently, another container, at ICD Ludhiana, imported by Re-
spondent No. 2, was also seized, in which imported cigarettes were
found concealed.
(iii) Mr. Neeraj Aggarwal, Mr. Tarun Aggarwal, Mr. Sanjiv Aggarwal,
Mr. Murarilal Girdharilal Sharma and Mr. Sanjay Lal Choudhary
and Mr. Bhushan Bansal who were involved in the aforesaid im-
ports filed W.P. No. 12517/2016 before the High Court of Punjab &
Haryana seeking provisional release of cigarettes imported with
Bills of Entry Nos. (i) 4785466, dated 4-4-2016, (ii) 4308262, dated 19-
2-2016 and (iii) 4410560, dated 27-2-2016 which had been seized at
Ludhiana and Delhi. They also requested that directions be issued,
to the DRI, to issue show cause notice, so that they could approach
the Settlement Commission and have the case settled.
(iv) The High Court of Punjab and Haryana disposed of the aforesaid
writ petition with directions inter alia to the DRI, to issue a show
cause notice in respect of the aforesaid three Bills of Entry under
Section 28 read with Section 123 of the Customs Act, 1962 (hereinaf-
ter referred to as “the Act”) within four weeks, and to the petition-
ers, before the High court to move the Settlement Commission with-
in four weeks of the date of issuance of the show cause notice. The
Settlement Commission was given liberty to decide all issues in re-
spect of the aforesaid three Bills of Entry.
(v) Subsequently, that the order dated 26-8-2016 passed on an applica-
tion moved by DRI, time of issuance of show cause notice was ex-
tended, by the High Court, by four weeks.
(vi) Ultimately, show cause notices, were issued, proposing confiscation
of the cigarettes imported with the aforesaid three Bills of Entry
Nos. (i) 4785466, dated 4-4-2016, (ii) 4308262, dated 19-2-2016 and
(iii) 4410560, dated 27-2-20216 as well as confirmation and demand
of duty of Customs of ` 6,74,92,998/- in respect of the cigarettes and
` 2,77,451/- in respect of the Aluminium scrap imported with the
said Bills of Entry. The show cause notices also proposed appropria-
tion towards the said demand of ` 6,30,84,822/- deposited during
the investigation. Respondent Nos. 2 to 11 were also directed to
show cause against imposition of penalty.
(vii) Respondent Nos. 2 to 11 approached the Settlement Commission af-
ter depositing ` 6,63,66,048/- against demand of ` 6,77,70,449/-
proposed in the show cause notice. Liability, to interest of
` 4,76,389/- was also admitted.
(viii) The three applications of settlement were filed on 16-8-2017, 11-12-
2017 and 12-12-2017.
(ix) In the interregnum, Notification No. 103/2016-Cus. (N.T.), dated
26th July, 2016, cigarettes were notified under Section 123 of the
Customs Act, 1962. In other words, on the date of filing of aforesaid
settlement applications by Respondent Nos. 2 to 11, cigarettes stood
notified under Section 123, by the aforesaid notification.
(x) Section 127B of the Customs Act, 1962 provides thus :
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