Rexnord Electronics And Controls Ltd vs Union Of India And Others

The Supreme Court interpreted Sections 127A and 127H of the Customs Act, 1962, in the context of the Settlement Commission's jurisdiction to waive interest on customs duty. The Court held that the Settlement Commission does not have the authority to waive interest payable under the bond related to export obligations, as such interest is not contractual but statutory in nature. Consequently, the appeal was dismissed, affirming the High Court's decision to uphold the Settlement Commission's order requiring payment of interest.