ARUNSARAN TEXTILES PVT LTD Vs. DIRECTOR GENERAL OF FOREIGN TRADE MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE

JUDGEMENT

(1.) Writ Petition is filed praying to issue a Writ of Certiorarifed Mandamus to call for records in and connected with Na. Ka.4049/07/Aa.2 dated 11.10.07, issued by the third Respondent, quash the same and further direct the second Respondent to issue the copy of the order imposing penalty against the Petitioner company, so as to enable them to prefer an appeal against the said ex parte order, and consequently hold that the said order on being served on the Petitioner company shall be the date of service of the order.

(2.) Petitioner was granted Export Promotion Capital Goods Licence (in short EPCG Licence) on 13.8.1998. Based on the licence, Petitioner is entitled to import capital goods on concessional rate of duty. Petitioner has to export goods for certain value in compliance of EPCG Licence with in a particular period. Based on the EPCG Licence, Petitioner imported shuttleless looms on 5.11.1998 for certain value. On 1.10.2004, Petitioner submits statement of exports done by him to the second Respondent, the Joint Director General of Foreign Trade. On 22.2.2005 the second Respondent Joint Director General of Foreign Trade called upon the Petitioner to submit records to show fulfillment of export obligation. On 2.3.2005, Petitioner submitted certain documents. On 23.3.2005, the second Respondent sought for copies of shipping bills to show proof of export. On 27.5.2005, the period of export obligation was extended. Petitioner makes further requests for extension of time by subsequent correspondence. All those facts are not in dispute.

(3.) On 31.7.2006, the second Respondent issued demand-cum-show cause notice in terms of Section 14 of the Foreign Trade (Development and Regulation) Act, 1992 for action under Section 11 (2) of the Act stating that the Petitioner did not fulfill the export obligation under EPCG Licence. The said demand-cum-show cause notice dated 31.7.2006 in File No. 32/31/20/80/AM 99 has fixed the date of hearing as 23.8.2006. It is the case of the Respondents 1 and 2 that the said demand-cum-show cause notice was sent on 2.8.2006 by ordinary post along with 38 other covers. Petitioner did not appear for the hearing and failed to submit a reply. As a result, the second Respondent Joint Director of Foreign Trade, Coimbatore, passed an order in File No. 32/31/20/80/AM 99 dated 11.9.2006 whereby he held that the Petitioner has violated the conditions of the EPCG Licence. He held that the Petitioner is liable for penalty under Section 11(2) of Chapter IV of the Foreign Trade (Development and Regulation) Act, 1992. Consequently, a penalty of Rs. 2,97,64,385/- was imposed. This order, according to the Petitioner, was not served on him. Whereas the Respondents 1 and 2 state that this order was despatched on 14.9.2006 along with 41 others under ordinary postal covers.