Customs Act, 1962 — Chapter XIVA: Settlement of Cases
127C. Procedure on receipt of an application under section 127B
On receipt of an application, the Settlement Commission calls for a report from the Principal Commissioner/Commissioner of Customs, and, after examining the report and hearing the applicant, may by order allow the application to proceed, or reject it. Where allowed, the Commission calls for records from the officer, and, after examination and further enquiry/investigation as it deems fit and giving the applicant and the officer an opportunity of being heard, passes an order on the matters covered by the application (and any other matter relating to the case not covered by the application but referred to in the report), providing for the terms of settlement including duty, penalty, interest, and immunity from prosecution, subject to conditions. The Commission may also order provisional attachment to protect revenue during the pendency of proceedings before it. If no order is passed within nine months (extendable by three months) from the last day of the month of application, the proceedings abate and the case reverts to the adjudicating authority.
