XTRAA CLEANCITIES LTD Vs. UOI

JUDGEMENT

(1.) THE Adjudicating Authority constituted under Section 21 of the Special Economic Zones, Act, 2005 r/w Foreign Trade (Development & Regulation) Act, 1992 has vide order dated 21st December, 2011 imposed penalty of Rs.66.30 crores on the petitioner Company and also suspended the Importer Exporter Code No.4606000066 of the petitioner Company, a Unit in Vishakhapatnam SEZ. THE petitioner Company appealed against the said order to the Appellate Authority constituted under Section 15 of the Foreign Trade Act.

(2.) THAT the petitioner Company prior to imposition of the penalty aforesaid entered into an agreement for purchase on High Seas, of Fatty Acid Methyl Ester (FAME) for a total sale consideration of Rs.72 crores. The petitioner Company claims to have been unable to pay the said sale consideration and was thus unable to have the said imported goods released which are claimed to be incurring demurrage. The petitioner Company further claims that the foreign seller of the said goods has agreed to take back the said goods and the petitioner Company was thus required to re- export the same. However since the Importer Exporter Code No.4606000066 of the petitioner Company had been suspended, the petitioner Company was unable to. The petitioner Company in the circumstances applied to the Appellate Authority for revoking the suspension of the Importer Exporter Code No.4606000066 for the purpose of re-exporting the said goods.

(3.) HOWEVER dispute arose about the acceptance of the said alternative security also and which led to the filing of the present petition which was disposed of vide detailed order dated 12th April, 2012. The interest of the respondents were sought to be protected by directing the petitioner Company inter alia to furnish a bond giving security of all the assets of the petitioner Company. The respondents were directed to furnish the draft of the bond to the petitioner Company.