2013 (11) TMI 549 - HC - Customs

Cancellation of Import Export Code Number - Export of 100KVA transformers M/s. Uttar Haryana Bijli Vitaran Nigam Limited, Haryana - Availment of duty exemption for the inputs sourced for the manufacture of the said transformers - Show cause notice issued for non fulfillment of export obligation - JT. DGFT cancelled the petitioner s Import Export Code No. 0488011868 but the same was not served on the petitioner and no opportunity was given to the petitioner before passing the impugned order - Held that - Before passing the impugned order dated 4-4-2012, no opportunity was given to the petitioner and also copy of the order was not sent to them, which amounts to violation of the principles of natural justice. Before cancelling the petitioner s Import Export Code No. 0488011868, the first respondent ought to have given an opportunity of hearing to enable them to substantiate their case. Considering the facts and circumstances of the case and in the interest of justice, the impugned order dated 4-4-2012 passed by the first respondent is quashed with a direction to the first respondent to consider the matter afresh and pass order in accordance with law as expeditiously as possible, preferably, within a period of two weeks from the date of receipt of a copy of this order, after giving opportunity to the petitioner to substantiate their claim - Decided in favour of Petitioner.

Summary

Issues:
Petitioner seeks writ of certiorarified mandamus to challenge cancellation of Import Export Code and request rectification of records.

Analysis:
The petitioner filed a writ petition seeking relief against the impugned order cancelling their Import Export Code. The petitioner had obtained a Special Import Licence for supply of transformers as deemed exports. Despite submitting proof of fulfilment of export obligation, the first respondent cancelled the Import Export Code without providing an opportunity of hearing to the petitioner. The petitioner contended that the order was passed without serving a copy and was only known through the internet. The respondent argued that the petitioner failed to provide documentary evidence of exporting the finished product. The Court noted the violation of principles of natural justice as no opportunity was given to the petitioner before cancellation. The impugned order was quashed, directing the respondent to reconsider the matter and pass a new order after giving the petitioner an opportunity to substantiate their claim within two weeks.

Conclusion:
The High Court, after considering the submissions from both parties and examining the available documents, found that the cancellation of the Import Export Code without providing an opportunity of hearing to the petitioner was a violation of natural justice. The Court allowed the writ petition, quashed the impugned order, and directed the respondent to reevaluate the matter in accordance with the law, ensuring the petitioner is given a chance to present their case. The judgment emphasized the importance of procedural fairness and ordered the respondent to act promptly on the matter.