2020 (2) TMI 823 - HC - Customs

Benefit under EPCG license - inaction on the part of the respondents in not issuing a letter / certificate clarifying whether M/s. Electrotherm (India) Limited located within the jurisdiction of the respondent No.3 has utilised the invalidation letter or not - HELD THAT - Prima facie, it appears from the contents of the letter that the matter is under consideration. However, we direct the Additional Director General of Foreign Trade to expedite the matter and furnish the necessary information asked for by the writ applicant at the earliest. Application disposed off.

Summary

Issues:
Challenge to inaction of respondents in issuing clarification on utilization of invalidation letter for supply of equipment.

Analysis:
The writ applicant sought relief through a writ application under Article 226 of the Constitution of India, challenging the respondents' inaction in providing a letter or certificate clarifying the utilization of an invalidation letter dated 21st October 2004. The applicant alleged that despite reminders, no response was received regarding the utilization of the invalidation letter by a specific company for the supply of equipment. The main contention was the lack of communication and clarification from the authorities despite repeated requests.

The applicant's counsel highlighted specific letters from the paper book, emphasizing the communication gap and the urgency of the matter. The letters indicated the applicant's efforts to seek clarification on the non-utilization of the invalidation letter, mentioning instances where the equipment supplied did not meet performance guarantees and had to be returned, leading to a refund. The applicant expressed frustration over being declared a defaulter without justification and emphasized the need for confirmation from the authorities regarding the non-claim of export benefits against the invalidated license.

In response to the applicant's plea, the Assistant Director General of Foreign Trade mentioned that an Affidavit-cum-Indemnity Bond was requested from the supplier due to the reported loss or misplacement of the EPCG license and invalidation letter. The court acknowledged the ongoing consideration of the matter but directed the Additional Director General of Foreign Trade to expedite the process and provide the necessary information promptly. The court expected the resolution of the issue within four weeks from the date of the order, indicating a concern for timely action and closure of the case.

Ultimately, the writ application was disposed of with the directive for expedited action from the authorities. The judgment highlighted the importance of effective communication and timely resolution of disputes, emphasizing the need for clarity and cooperation between the concerned parties. The court's intervention aimed to ensure a prompt resolution to the applicant's concerns regarding the utilization of the invalidation letter and related export benefits, emphasizing the significance of administrative efficiency and responsiveness in such matters.