2021 (4) TMI 751 - HC - Customs

Violation of principles of natural justice - material on the basis of which the show-cause notice and the impugned order were issued, has not been supplied and no reply has been received to these representations - HELD THAT - The order putting the Petitioner in the DEL category was a temporary order. The Petitioner was given an opportunity to file a reply to the said order and the said order was sent to the Petitioner along with a show-cause notice. In the show-cause notice also, the Petitioner has been asked as to why the Petitioner ought not to be continued to be placed in the DEL. Thus, there was no finality, and no period was mentioned, as to for how long the Petitioner was put on the DEL - Since there has been no reply whatsoever in response to the repeated communications of the Petitioner, directions are liable to be issued so that the matter reaches a conclusion. The documents relied upon by the Respondent shall be supplied to the Petitioner within a period of four weeks i.e., by 15th May 2021 - Petition disposed off.

Summary

Issues: Challenge to order placing petitioner in Denied Entity List (DEL); Non-supply of material relied upon in show-cause notice; Opportunity for reply and final decision process.

The judgment involves a challenge to an order dated 21st December 2018 placing the petitioner in the Denied Entity List (DEL) under the Foreign Trade (Development & Regulation) Act, 1992. The petitioner sought certain documents relied upon in the show-cause notice but did not receive them. The respondent suggested filing an appeal under Section 15 of the Act. The court examined the order and show-cause notice, noting that the petitioner was given an opportunity to respond and the order was temporary. As the petitioner did not reply despite repeated communications, the court issued directions for the supply of documents, additional response filing, and a final decision with a personal hearing by specified dates.

The court observed that the order placing the petitioner in the DEL was temporary, as evidenced by the show-cause notice calling for a reply on why the petitioner should not continue to be listed. The lack of a response from the petitioner led to the issuance of directions for the supply of documents relied upon by the respondent. The petitioner was given a deadline to submit an additional response after receiving the documents, followed by a personal hearing and a final decision by a specified date. The judgment emphasized the need for a conclusion in the matter due to the absence of any reply from the petitioner despite repeated communications.

The court directed the respondent to supply the documents relied upon in the order and show-cause notice to the petitioner within four weeks. The petitioner was then granted four weeks to submit an additional response after receiving the documents, with a final decision and a personal hearing scheduled on or before 15th August 2021. The judgment left the remedies for the petitioner open in case further legal action was required after the final decision by the respondents. Ultimately, the court disposed of the petition and all pending applications with these directions and observations.