KASHMIRI LAL Vs. UNION OF INDIA

JUDGEMENT

(1.) The challenge in this petition is to an order dated 4th June 1997 passed by the Additional Director General of Foreign Trade ('ADGFT') under Section 4-K of the Imports and Exports (Control) Act, 1947 ['IEC Act'] read with Section 20(2) of the Foreign Trade (Development & Regulation) Act, 1992 [the 'FTDR Act'] imposing a penalty of Rs.1 crore on the Petitioner for utilizing material imported duty free "for a value of Rs. 48,07,561/- otherwise than in accordance with the conditions of the said licence." The petition also challenges an order dated 1st May 1998 passed by the Appellate Committee dismissing the Petitioner's appeal and the consequential order dated 31st July 1998 issued by the Foreign Trade Development Officer asking the Petitioner to deposit the penalty amount within 20 days.

(2.) While directing notice to issue in the petition on 12th August 1998, this Court restrained the Respondents from encashing the bank guarantee furnished by the Petitioner to the Respondents as a condition for grant of licence.

(3.) The Petitioner states that M/s Anil International made an application for grant of duty free licence and pursuant thereto a Duty Free Licence dated 30th October 1989 was issued to the said firm enabling it to import CRCA coils secondary grade restricted both by value and quantity. The maximum value that could be imported was Rs.50,00,000/- and the maximum quantity was 895.400 metric tonnes (MTs). The export obligation was that the Petitioner should export 814 MTs diesel engine parts and accessories of the value of Rs.75,00,000/-.