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Petitioner impugned orders passed by the Adjudicating Authority and the Appellate Committee regarding alleged non-performance as an export unit and misuse of imported goods under licenses. Analysis: The petitioner, approved for a 100% export-oriented unit in Gujarat, faced a show cause notice under relevant Acts for alleged non-performance and misuse of imported goods. The respondent contended that the petitioner failed to meet export obligations, imported capital goods without duty payment, and had a value addition shortfall. The respondent argued that the impugned orders detailed the petitioner's submissions. Conversely, the petitioner's counsel argued that the notice was based on non-performance, not misuse, citing specific license conditions. The counsel highlighted that any misuse could have been addressed under Import Control Order Clause 8. The petitioner's counsel emphasized that the show cause notice lacked allegations of goods misuse, challenging the jurisdiction of the Director General's order under the relevant Act. The judgment noted the absence of misuse allegations in the notice, crucial for invoking penalties under the Act. It clarified that penalties for misuse require specific allegations in the notice, not merely non-compliance with export obligations or value addition. The judgment highlighted the distinction between non-compliance penalties and misuse penalties under the Acts, emphasizing the necessity of misuse allegations for penalty imposition. The judgment scrutinized the show cause notice's contents, emphasizing the lack of misuse allegations crucial for invoking penalties under the relevant Acts. It clarified that penalties for misuse necessitate specific allegations, not just non-compliance with export obligations. The judgment differentiated between penalties for non-compliance and misuse, underlining the importance of clear misuse allegations for penalty imposition. Ultimately, the judgment quashed the Adjudicating Authority's order under the Act, ruling in favor of the petitioner due to the absence of misuse claims in the notice, thereby allowing the petition and making the rule absolute.
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