M/S. SRI LAKSHMI SARASWATHI SPINTEX LTD. Vs. DIRECTOR GENERAL OF FOREIGN TRADE POLICY RELAXATION COMMITTEE MINISTRY OF COMMERCE AND INDUSTRY

JUDGEMENT

(1.) Heard Mr.Adinarayana Rao, learned counsel for the petitioner, Mr.J.Madanagopal Rao, learned Senior Central Government Standing Counsel appearing for respondents 1 to 3 and Mr.T.Pramod Kumar Chopda, learned senior standing counsel for the fourth respondent.

(2.) This is the third round of litigation which the petitioner has initiated before this Court for virtually the same purpose. The issue, which falls for consideration in this writ petition lies in a narrow compass, that is to say as to whether the petitioner is required to pay a sum of Rs. 22, 56, 485.00, being the compensation fee for being entitled for extension of time to complete the export obligation in terms of the advance authorisation permission dated 23.08.201 In terms of the said permission, the petitioner had time till 31.03.2014 to complete the export obligation as per the stipulation in DEEC licence. The petitioner was unable to do so and sought for extension vide application dated 05.01.2015. Undoubtedly, this application was not disposed of and was pending.

(3.) The petitioner followed up the said application by a representation dated 18.05.2017. In the meantime, the Customs Department, the fourth respondent herein, in whose favour a bond and Bank Guarantee were furnished, to ensure compliance of the conditions of advance authorisation, had encashed the Bank Guarantee, since the petitioner failed to produce Export Discharge Certificate from the third respondent. Thereafter, the second respondent issued show-cause notice dated 005.2017 under Sec. 14 for initiating action under Sec. 9(2) of the Foreign Trade (Development and Regulation) Act, 1992. The show-cause notice proposed as to why the petitioner's name should not be placed under Denied Entry List (DEL) refusing issuance of further licence and renewal of old licence in terms of the Rule 3 of the Foreign Trade (Regulation) Rules, 1993 r/w. Sec. 9 of the Act. The petitioner submitted their reply to the show-cause notice vide letter dated 22.05.2017, wherein among other things, they have stated that they have taken up the matter with Policy Relaxation Committee, New Delhi (PRC) and requested time till middle of Sept. 2017 to appear for adjudication of the show-cause notice. This request was not accepted or rejected, but an order was passed on