- (1.)The order under appeal was passed by a division bench of the High Court at Bombay. It dismissed the writ petition filed by the present appellant. The appellant is here by way of appeal by special leave.
(2.)On 9/04/1995. the appellant flew into Bombay Airport. His baggage was examined and cleared after he had paid Rs. 33.600/ - as customs duty. Before he left the airport, however, at the behest of the assistant commissioner of customs, the goods that the appellant had imported were seized because it was suspected that they were undervalued. The appellant gave a statement under section 108 of the Customs Act on 18/04/1995. On 8/03/1996, a show cause notice was issued to the appellant. He was asked why the goods under detention should not be confiscated and penal action should not be taken. After his reply, the deputy commissioner of customs confirmed the show cause notice on 23/05/1997 and ordered the confiscation of the goods. He also imposed upon the appellant a penalty in a sum of Rs. 2 lakhs. An appeal was filed by the appellant, which was dismissed on 9/09/1998.
(3.)On 4/01/1999, the appellant filed a declaration under the Kar Vivad samadhan Scheme, 1998. On 5/02/1999, an order was passed under section 90 of the scheme which required the appellant to make payment of a sum of Rs. 1 lakh within thirty days, the sum of Rs. 1 lakh being fifty per cent of the penalty amount of Rs. 2 lakhs. The said order made it clear that upon settlement of the case, the duty on the confiscated goods would have to be paid before their release. On 24/03/1999, the designated authority under the scheme informed the appellant that his declaration under the scheme had been rejected because he had failed to make payment of the sum of Rs. 1 lakh as aforementioned.