(Dr. D.Y. Chandrachud, J.)

These proceedings arise from a decision of the Settlement Commission under the provisions of Section 127C(5) of the Customs Act 1962.

2. The Respondent imported a Ferrari under a bill of entry dated 14 February 2008 at Nhava Sheva. He claimed the benefit of an exemption notification 21/2002-CUS dated 1 March 2002 on the basis that it was a brand new vehicle. The DRI commenced an investigation on intelligence information which it received that the vehicle was second hand and was registered with the Driver and Vehicle Licensing Agency (DVLA) in the United Kingdom prior to its importation. The benefit of the exemption notification was alleged to be wrongly claimed on that basis. A notice to show cause was issued to the Respondent on 21 December 2009 by the Additional Director General in the DRI. The Respondent made an application before the Settlement Commission on 18 August 2010, by which he accepted a further duty liability of Rs.61.32 lacs over and above the duty paid in the amount of Rs.72.61 lacs at the time of import. Interest thereon was also paid. Before the Settlement Commission, the contention of the jurisdictional commissioner was that th