2024 (4) TMI 84 - HC - Customs

Import of hot rolled steel plates and steel sheets - Fixing of minimum import price - The petitioner argues that they applied for registration within the stipulated timeframe of 15 days, as required by paragraph 1.05(b) of the Foreign Trade Policy, despite a delay in actual registration. - Violation of principles of natural justice - irrevocable commercial letter of credit not registered with the jurisdictional Regional Authority (RA) within 15 days - importer neither appeared for personal hearing nor replied to the show cause notice. HELD THAT - The respondent decided to proceed ex-parte on the basis that the importer had neither appeared for personal hearing nor replied to the show cause notice. As indicated earlier, the reply of the petitioner to the show cause notice along with the acknowledgement is on record. Even proceeding on the assumption that such reply was not received by the respondent for any reason, the impugned order becomes unsustainable in the face of such reply and the contents thereof. It should also be recognized that that the petitioner has placed on record not only Notification No.38 but also the irrevocable letter of credit dated 02.01.2016 and evidence that the petitioner applied for registration on 18.02.2016, which is within the stipulated 15 day period. In these circumstances, it is just and necessary that the petitioner be provided an opportunity. Therefore, the impugned order is quashed and the matter is remanded to the respondent for reconsideration. The petitioner is permitted to re-submit the reply dated 11.09.2021 along with all supporting documents to the respondent within 15 days from the date of receipt of a copy of this order - Petition disposed off.

Summary

Issues involved: Interpretation of Notification No.38/2015-2020 u/s 3 of the Foreign Trade (Development and Regulation) Act 1992 regarding minimum import price of steel plates and sheets; Compliance with paragraph 1.05(b) of the Foreign Trade Policy, 2015-2020 for registration of irrevocable letter of credit within stipulated time.

Summary:

Interpretation of Notification No.38/2015-2020: The petitioner, engaged in importing steel plates and sheets, entered into a contract with a supplier before the issuance of Notification No.38 fixing the minimum import price. The petitioner applied for registration within the prescribed time frame, but a show cause notice was issued later, leading to the impugned order. The petitioner argued that they complied with the exemption under the notification and had a good case on merits. The respondent alleged non-receipt of the petitioner's reply and lack of attendance at personal hearings. The Court noted discrepancies in the respondent's claims and directed a reconsideration, emphasizing the need for a fair opportunity for the petitioner.

Compliance with Foreign Trade Policy: The petitioner contended that they timely applied for registration of the letter of credit, as required by paragraph 1.05(b) of the Foreign Trade Policy. The respondent claimed non-compliance based on lack of evidence and non-attendance at hearings. The Court found the respondent's decision to proceed ex-parte unjustified, considering the petitioner's submission and registration details. Consequently, the impugned order was quashed, and the matter remanded for a fresh consideration, allowing the petitioner to resubmit their reply and supporting documents within a specified timeframe.

This judgment highlights the importance of procedural fairness and adherence to regulatory requirements in trade-related matters, ensuring that parties are given a genuine opportunity to present their case before a decision is made.