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Issues:
1. Interpretation of conditions of advance license for import. 2. Validity of the requirement for a fresh bank guarantee. 3. Existence of the foreign buyer. 4. Compliance with export obligations. 5. Legality of the impugned order and show cause notice. Analysis: 1. The petitioner applied for an import license and was granted an Advance License subject to conditions. The petitioner placed orders for copper wire scrap from Singapore and faced issues with fulfilling export obligations within the specified timeline. The petitioner sought an extension, which was granted by the competent authority. However, the third respondent issued orders conflicting with the extension granted, leading to a dispute regarding the export obligations under the advance license. 2. The respondents contended that the petitioner failed to execute a fresh bank guarantee equivalent to 100% of the Customs duty on the imported items, as directed. The court examined the conditions of the advance license, which required a bond for 25% of the Customs duty. The court found that the petitioner had already executed a bond for 25% and was not obligated to provide a bond for 100%. The insistence on a fresh bank guarantee was deemed unreasonable and untenable. 3. The respondents raised concerns about the existence of the foreign buyer, R and R Trading Co., based on inquiries indicating non-registration and lack of listing. The court analyzed the evidence provided by the High Commissioner of India in Singapore and found that the absence of registration or telephone listing did not conclusively prove the non-existence of the company. The court noted that the petitioner had correspondence from the purported buyer, suggesting its existence. 4. The court emphasized the importance of compliance with export obligations under the advance license scheme. The petitioner's efforts to fulfill the obligations were hindered by conflicting directives from the respondents, leading to a situation where the petitioner faced challenges in meeting the export commitments within the stipulated timeframe. The court found that the petitioner's actions were in line with the extension granted and that the refusal to allow clearance of goods for export was unjustified. 5. The impugned order issued by the Joint Chief Controller of Imports and Exports was deemed unjust and quashed by the court. The court ruled in favor of the petitioner, allowing both writ petitions and dismissing the requirement for a fresh bank guarantee and the doubts regarding the existence of the foreign buyer. The court highlighted that the petitioner's lack of response to the show cause notice did not invalidate their right to challenge the impugned order, ultimately leading to a favorable judgment for the petitioner.
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