Case Law Details
Union of India Vs Pratibha Construction Engineers & Contractors (India) Pvt. Ltd. (Bombay High Court)
Section 127H of the Act of 1962 confers power on the Settlement Commission to grant immunity from prosecution and penalty. Section 127H(1) as it read prior to 1 June 2007 empowered the Settlement Commission, upon satisfaction of the conditions laid down in the provisions, to grant immunity either wholly or in part from the imposition of any penalty, fine and interest.
Thereafter section 127H(1) was amended by the Finance Act, 2007 brought into effect from 1 June 2007. By this amendment, the phrase “interest” has been deleted from section 127H(1).
The show-cause-notice is dated 4 September 2008. The application for settlement filed by Respondent No.1 is dated 16 December 2009. The assertion in the petition that after the amendment and post 1 June 2007, the Settlement Commission would not have power in respect of prosecution and penalty has gone uncontroverted.
Neither the Respondent No.1 has filed reply controverting this position nor has given any instruction to his advocate. Therefore, we set aside the the complete immunity granted to Respondent No.1 in respect of interest.
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