MAMTA EXPORTS (P) LTD. Vs. JOINT DGFT

JUDGEMENT

(1.) THE Petitioner has called into question the second Respondent Appellate Authority's order, dated 10th April, 2006 (Annexure-E) and for remitting the matter back to the first Respondent for verification of the documents and grant fresh hearing.

(2.) THE brief facts of the case are that the first Respondent imposed a fiscal penalty of Rs. 11,04,002/ - on the Petitioner and its Directors for the non -fulfillment of export obligations against EPCG Licence No. 3436212, dated 5th January, 1995. Aggrieved by this order, the Petitioner filed the appeal before the Respondent No. 2. But this appeal was filed without complying with the requirement of pre -deposit prescribed by the second proviso to Section 15(1) of the Foreign Trade (Development and Regulation) Act, 1992 ['the said Act' for short]. When the Petitioner was called upon to submit the pre -deposit amounts, it pleaded financial difficulties and sought the opportunity of personal hearing. The Respondent No. 2 reduced the pre -deposit amount to 25% of the penalty amount. However the Petitioner did not deposit the reduced amount also. On the other hand, it submitted a demand draft for Rs. 25,000/ -. The Petitioner sought some more opportunities, which were given by the Respondent No. 2. However, as the Petitioner did not submit the required pre -deposits and confirmed that it could not fulfil its obligations against the export licence, the Respondent No. 2 dismissed the appeal by its order, dated 10th April, 2006 (Annexure -E). It is this order, which is impugned in this writ petition.

(3.) SRI Shashikanth, the learned Counsel for the Respondents submits that this petition is totally misconceived. The Petitioner has neither challenged the order reducing the amounts to 25% of the penalty amount nor has he challenged the validity of the second and third proviso to Section 15(1) of the said Act. The result is that what has been filed by the Petitioner is only a defective appeal, which is rightly rejected by the second Respondent Appellate Authority.