M.M.Kumar, J.

1. A short question raised in this petition filed under Article 226 of the Constitution is "whether proceedings for prosecution for any such offence within the meaning of Section 127H of the Customs Act, 1962 (for brevity, the Act), are deemed to have commenced on the date of registration of FIR or when challan is presented before the Magistrate". The question emerges from order dated 14.9.2006 (P-5), passed by the Settlement Commission, Customs and Central Excise, Mumbai-respondent No. 3 (for brevity, the Settlement Commission), on an application filed by the petitioner along with others under Section 127-B of the Act. The Settlement Commission has declined the prayer of the petitioner for grant of immunity from prosecution by concluding that proceedings for prosecution have already commenced when FIR against the petitioner were registered.

2. Facts in brief which emerge from the order of the Settlement Commission and from the averments made in the petition are that the petitioner obtained advance licences on 16.12.2002 under DEEC Scheme in the name of M/s Bhoday International, 94, Ahluwalia Street, Miller Ganj, Ludhiana. The import licence for duty free impo