L P DESAI Vs. UOI

JUDGEMENT

(1.) The petitioner, Sh. L.P. Desai, was a director in Shri Ambuja Petrochemicals Ltd. (hereinafter referred to as 'the said company'). The said company had applied for and was granted licence by Respondent No. 4 under the Duty Exemption Scheme whereunder it was permitted to import orthoxylene against the obligation to export pthalic anhydride.

(2.) Orthoxylene was imported by the said company and it used the same in the manufacture of pthalic anhydride. It is alleged that due to circumstances and reasons beyond its control, the said company could not meet its export obligations in respect of pthalic anhydride, as a result of which a show cause notice was issued to the said company on 07.11.1994 which culminated in the Order-in-Original dated 27.07.1995/07.08.1995 passed by the Additional Director General (Foreign Trade), New Delhi. By virtue of this Order, the Additional Director General (Foreign Trade), inter-alia, imposed a penalty of Rs 1.25 crores on, inter-alia, the petitioner being a director of the said company. Being aggrieved by this Order, an appeal was preferred and the same was dismissed by the impugned Appellate Order dated 13.08.1997 passed by the Appellate Committee (Cell), Ministry of Commerce, Government of India.

(3.) The short point that arises for consideration in this Petition is this:-