IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION CIVIL APPELLATE JURISDICTION CIVIL APPELLATE JURISDICTION WRIT PETITION NO.3516 OF 2008 WRIT PETITION NO.3516 OF 2008 WRIT PETITION NO.3516 OF 2008 WITH WITH WITH WRIT PETITION NO.3517 OF 2008 WRIT PETITION NO.3517 OF 2008 WRIT PETITION NO.3517 OF 2008 WITH WITH WITH WRIT PETITION NO.3519 OF 2008 WRIT PETITION NO.3519 OF 2008 WRIT PETITION NO.3519 OF 2008 WITH WITH WITH WRIT PETITION NO.3520 OF 2008 WRIT PETITION NO.3520 OF 2008 WRIT PETITION NO.3520 OF 2008 M/s.Mahindra & Mahindra Ltd. ..Petitioner. V/s. The Union of India & Ors. ..Respondents. Mr.Sridharan With PrakashShah, J.H.Motwani and Nambirajan i/b. PDS Legal for petitioner. Mr.Pradeep Jetly with Y.S.Patil for respondents. CORAM : D.K.DESHMUKH, J. CORAM : D.K.DESHMUKH, J. CORAM : D.K.DESHMUKH, J. J.P.DEVADHAR, J.P.DEVADHAR, J.P.DEVADHAR, J. J. J. DATED : 4TH SEPTEMBER, 2008. DATED : 4TH SEPTEMBER, 2008. DATED : 4TH SEPTEMBER, 2008. P.C. :- P.C. :- P.C. :- 1. Heard. Rule. Rule made returnable forthwith. By consent of the parties, all the petitions are taken up for final hearing. 2. The short question raised in these Writ Petitions is, whether the Settlement Commission was justified in levying penalty and directing the Petitioners to pay interest @ 10% for the entire amount of customs duty settled at Rs.1,41,53,468/- ? - = : 2 : = - 3. Before the Settlement Commission, the petitioners had contended that in the absence of any specific provision under the Act, the penalty and interest cannot be levied upon the petitioner. However, the Settlement Commission without assigning any reasons has imposed the penalty of Rs.5 lakhs and directed payment of interest @ 10% on the entire amount of customs duty settled by the Settlement Commission. 4. Before us, learned counsel for the petitioners fairly stated that the amount of penalty imposed by the Settlement Commission has already been paid and further the petitioners have also paid interest on the basic customs duty settled by the Commission. Thus, the dispute relates to the jurisdiction of the Commission to impose penalty and levy of interest on the customs duty other than the basic customs duty, if there is no power under the Act. 5. Perusal of the order passed by the Settlement Commission clearly shows that the specific plea raised by the petitioners regarding levy of penalty and interest has not been considered by the Commission. - = : 3 : = - 6. In this view of the matter, all the Writ Petitions are disposed off by passing the following order. a) the orders passed by the Settlement Commission which are impugned in the respective petitions are quashed and set aside in so far as the said order relates to imposition of penalty and interest @ 10% on the customs duty other than the basic customs duty settled by the Settlement Commission and the matter is remanded back for de novo consideration on the above issues. b) The Settlement Commission is directed to pass fresh orders on merits, after hearing both the parties on the above issues as expeditiously as possible, preferably within a period of 3 months from the date of communication of this order. c) All the contentions of both the parties are kept open. 4. Rule is made absolute in the above terms with no order as to costs. - = : 4 : = - (J.P. DEVADHAR, J.) (J.P. DEVADHAR, J.) (J.P. DEVADHAR, J.) (D.K.DESHMUKH, J.) (D.K.DESHMUKH, J.) (D.K.DESHMUKH, J.)