JUDGMENT :

K.R. Shriram, J.

1. Respondent No.1 had filed various bills of entries for clearance of goods with declared description “Secondary Defective High Speed Drills/Rods”. Intelligence report was received that there has been gross misdeclaration in the description, quantity and value in order to evade payment of appropriate duty of customs. Therefore, Special Investigation and Intelligence Branch (SIIB) of the customs department took up the investigation and found lot of discrepancies. Accordingly, show cause notices were issued. Upon receiving show cause notice Respondent No.1 approach the Settlement Commission under Section 127B of the Customs Act, 1962 (the Act) by filing two applications. The duty demanded in two show cause notices was Rs.2,13,72,356/- whereas petitioner admitted additional duty of Rs.72,64,064/-. The application that was filed on 21st September 2010 came to be disposed by an order dated 25th February 2011. The Union of India through Commissioner of Customs (Import) has approached this court impugning the said order dated 25th February 2011 passed by Respondent No.2 – Settlement Commission.

2. Mr. Jetly urged that Section 127B(1) of the Act mandates that any