SETTLEMENT OF CASES

1. Any importer, exporter or any other person may, in respect of a case, relating to him may make an application to the settlement commission for settlement of “case” which is pending before an adjudicating authority as on the date of making application³⁷. No such application shall be made unless:
   1. The applicant has filed a bill of entry, or a shipping bill, or a bill of export, or made a baggage declaration, or a label or declaration accompanying the goods imported or exported through post or courier and in relation to such document/s, a SCN has been issued to him by the proper officer;
   2. The additional amount of duty accepted by the applicant in his application exceeds ₹3,00,000/-;
   3. The applicant has paid the additional amount of customs duty accepted by him along with interest due under section 28AA;

   Application shall not be made under following circumstances:

   • For interpretation of classification of the goods
   • Case is pending in Appellate Tribunal or any Court
   • In relation to goods to which Section 123 applies (i.e. seizure in case of smuggled goods) or to goods in relation to which any offence under the Narcotic Drugs and Psychotropic Substances Act, 1985 has been committed

   Once the application is made before settlement commission, the same cannot be withdrawn by the applicant.

   Any person other than applicant may also make an application to Settlement Commission in respect of SCN issued to him in a case relating to applicant which has been settled or is pending before Settlement Commission and such notice is pending before adjudicating authority.

2. Procedure followed by Settlement Commission

   Within 7 days of receipt of application, the Settlement Commission (hereinafter referred as ‘Commission’) shall issue notice to the applicant requiring him to explain that why application made by him should be allowed.

   After considering the explanation offered by Applicant, the Commission shall accept or reject the application within 14 days from the date of notice. If no notice is issued or no order is passed within the above time limits, the application is deemed to be allowed.

   After acceptance of application, the Commission shall, within 7 days from the date of Order allowing application, call for a report with relevant records from jurisdictional Principal Commissioner of Customs or Commissioner of Customs. Such report shall be provided within 30 days from the date of receipt of communication from Commission.

   In case no report is submitted within specified time limit, the Commission shall proceed further with the matter on the basis of available record/s.

   If Commission requires further enquiry or investigation, it may direct the Commissioner (Investigation), within 15 days from the date of receipt of jurisdictional Principal Commissioner/Commissioner of Customs report, to make further enquiry or investigation. Such Commissioner (investigation) is required to furnish report within 90 days of receipt of communication from the Commission.

   In case no report is submitted within specified time limit, the Commission shall proceed further with the matter on the basis of available record/s.

   Thereafter, the Commission shall pass the Order after giving an opportunity, as it deems fit relating to the matters covered by the application and any other matter not covered under the application.

   Settlement Commission is empowered to rectify any error apparent on the face of record within 3 months from date of passing the order either suo motu or when such error has been brought to notice by jurisdictional Principal Commissioner/Commissioner of Customs or the applicant. However, such rectification enhancing liability of the applicant shall be made only after following the procedure of law including providing opportunity of being heard.