2009 (7) TMI 840 - HC - Customs

Exim licence denial of renewal export obligation - The order refused to grant or renew any licence to the petitioner company. It has serious consequences and would affect the business of the petitioners. The petitioners are, at the very least, entitled to know the basis for the authority arriving at such conclusion, particularly considering that the petitioners had contended that they had a value based licence and not a quantity based advance licence. - matter remanded back to DGFT

Summary

The Calcutta High Court, in a judgment delivered by Sanjib Banerjee, J., reviewed a writ petition challenging an order from the Deputy Director General of Foreign Trade under Rule 7(1)(k) of the Foreign Trade (Regulation) Rules, 1993. The petitioners contested an order from March 12, 2008, which was based on a notice issued on January 2, 2006, demanding payment of customs duty and interest on exported goods. The petitioners argued that they held a value-based advance license and should not be assessed based on import quantity. The Court found the order lacking in addressing the petitioners' contentions and directed the Deputy Director General to reconsider the matter and issue a reasoned order within six weeks. The writ petition was allowed, and the related application was disposed of. The judgment highlights the importance of providing a clear basis for decisions that impact businesses and the need for thorough consideration of all relevant factors in such cases.