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Issues: Challenge to penalty for illegal disposal of imported goods under advance license.
In this case, the petitioners challenged the penalty imposed by licensing authorities for illegally disposing of goods imported under an advance license. The original order debarring the petitioners for seven years and imposing a penalty of Rs. 25 lakhs was upheld by the Appellate Committee. The petitioners then filed a petition challenging this order. The High Court admitted the petition and granted interim relief, directing the petitioners to deposit Rs. 12.5 lakhs and furnish a bank guarantee for the same amount. The deposited amount, along with accrued interest, totaled Rs. 37,64,267 as per the report from the office of the Prothonotary and Senior Master. The court acknowledged that the petitioners had indeed violated the license conditions by selling imported goods locally. Despite the violation and the subsequent debarment, the court considered the petitioners' fulfillment of export obligations by procuring locally made goods. Taking into account the deposited amount with interest, the court decided to restrict the penalty to Rs. 12.5 lakhs with accrued interest, directing the amount to be handed over to the Director General of Foreign Trade. Consequently, the Prothonotary and Senior Master were instructed to transfer the deposited amount along with accrued interest to the Director General of Foreign Trade promptly. The bank guarantee of Rs. 12.5 lakhs provided by the petitioners was canceled and discharged. The petition was disposed of with no order as to costs.
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