2019 (1) TMI 134 - HC - Customs

Principles of natural justice - order passed u/s 15 of the Foreign Trade (Development & Regulation) Act, 1992 - submissions raised and the case law relied upon by the petitioner in support of its case have not been considered - non-speaking order - Held that - It is evident that the submissions of the petitioner made in support of its case have not been considered while disposing of the Appeal. Thus, leading to a flaw in the decision making process - impugned order set aside - petitioner s appeal to the Additional Director General of Foreign Trade, Respondent No.3 is restored to his file for disposal in accordance with law after following the principles of natural justice.

Summary

Issues: Challenge to order under Foreign Trade Act for breach of natural justice.

In this case, the petitioner challenged an order dated 20th December, 2017 passed by the Additional Director General of Foreign Trade under Section 15 of the Foreign Trade (Development & Regulation) Act, 1992. The petitioner contended that the impugned order breached the principles of natural justice as the submissions and case law presented were not considered by the Appellate authority, resulting in a non-speaking order. The petitioner had made submissions on merits and argued that even if there was a breach, it was a procedural lapse not warranting a penalty, citing various court decisions, including those of the Apex Court. The impugned order, however, failed to address these submissions, indicating a flaw in the decision-making process.

The High Court, upon considering the circumstances, quashed and set aside the impugned order dated 20th December, 2017. The petitioner's appeal to the Additional Director General of Foreign Trade was restored for disposal in accordance with the law while ensuring the principles of natural justice are followed. The court disposed of the petition in the above terms, keeping all contentions open for further consideration.