EXIM CONCEPT Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule. With the consent of the parties, writ petition is taken up for disposal.

(2.) Petitioner is aggrieved by the order passed by respondent No. 2 cancelling Duty Free Replenishment Certificate (in short 'DFRC') Licence Nos. 510071078 and 0510071176. Petitioner is stated to have purchased these DFRC Licences from M/s. Alpha Overseas and M/s. Gunja Impex in the month of November, 2002, for consideration. Petitioner submits that these licences have been cancelled by respondent No. 2, without giving any show-cause notice to the petitioner. Petitioner also submits that licences could not have been cancelled as petitioner was a bona fide purchaser for valuable consideration. The licences on the face of it carried the legend "Transferable". Petitioner thus bona fide purchased these licences from the above two concerns and was therefore entitled to use them for import.

(3.) Notice to show cause had been issued. Counter-affidavit has been filed on record. It transpires that original licence holders did not surrender the licences. M/s. Alpha Overseas and M/s. Gunja Impex informed the Joint Director General of Foreign Trade that licences had been sold and would have been utilized by the importer to whom it was sold and as such, they were not in a position to surrender DFRC licences. Respondents thereupon issued show- cause notice dated 27.12.2002 to M/s. Alpha Overseas and show cause notice dated 30.4.2003 to M/s. Gunja Impex. There was no response to show-cause notice and as such impugned cancellation order was passed.