DKM CASSETTE P LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The Petitioner is aggrieved by the impugned order dated 22nd April 1996 passed by the Additional Director General of Foreign Trade ('ADGFT'), Respondent No. 3 herein holding the Petitioner guilty of contravening the provisions of Section 4-I of the Import & Export (Control) Act, 1947 ('IEC Act') and Clause (8) of the Import (Control) Order, 1955 read with Section 20(2) of the Foreign Trade (Development& Regulation) Act, 1992 ('FTDR Act') levying the penalty of Rs. 55 lakhs on the Petitioner. The Petitioner also challenges the order dated 12th August 1997 passed by the Appellate Committee Cell (ACC), Respondent No. 2 upholding the above order.

(2.) The Petitioner applied to the Secretariat of Industrial Approvals ('SIA'), Department of Industrial Development, Ministry of Industry, Government of India in July 1985 for setting up a 100% export oriented unit ('EOU') for the manufacture of video-cassette shells. By a letter dated 4th November 1985 the SIA permitted the Petitioner to establish a 100% EOU with a capacity of 6 lakh pieces of video cassette shells per annum. Among the conditions in the said allotment letter was that the unit should achieve a value addition of 45% with the value of imported capital goods being set at Rs. 30.08 lakhs. The further condition was that the entire production should be exported. The letter also set out the list of capital goods permitted to be imported.

(3.) On a representation by the Petitioner the SIA by a letter dated 30th January 1987 reduced the value addition from 45% to 31.7% and enhanced the value of imported goods/capital to Rs. 50,16,000/-.