Rule 7 - Refusal to grant licence, certificate, scrip or any instrument bestowing financial or fiscal benefits and recovery of benefits. - Foreign Trade (Regulation) Rules 1993

7. 1 [Refusal to grant licence, certificate, scrip or any instrument bestowing financial or fiscal benefits and recovery of benefits]. - (1) The Director General or the licensing authority may for reasons to be recorded in writing, refuse to grant or renew a 2 [licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] if - (a) the applicant has contravened any law relating to customs or foreign exchange; (b) the application for the 2 [licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] does not substantially conform to any provision of these rules; (c) the application or any document used in support thereof contains any false or fraudulent or misleading statement 3 [or where any person makes or abets or attempts to make any export or import in contravention of any provision of the Act or any rules and orders made thereunder or the Policy]; (d) it has been decided by the Central Government to canalise the export or import of 4 [goods or services or technology] and distribution thereof, as the case may be, through special or specialised agencies; (e) any action against the applicant is for the time being pending under the Act or rules and Orders made thereunder; 5 [(f) the applicant is or was a partner in a partnership firm (including a limited liability partnership) or is or was a Director or a company or a proprietor of a proprietor ship firm having controlling interest against which any action is for the time being pending under the Act or rules and Orders made thereunder;] (g) the applicant fails to pay any penalty imposed on him under the Act; (h) the applicant has tampered with a 2 [licence, certificate, scrip or any instrument bestowing financial or fiscal benefits]; (i) the applicant or any agent or employee of the applicant with his consent has been a party to any corrupt or fraudulent practice for the purposes of obtaining any other 2 [licence, certificate, scrip or any instrument bestowing financial or fiscal benefits]; (j) the applicant is not eligible for a 2 [licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] in accordance with any provision of the Policy; (k) the applicant fails to produce any document called for by the Director General or the licensing authority; (l) in the case of a 2 [licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] for import, no foreign exchange is available for the purpose; (m) the application has been signed by a person other than a person duly authorised by the applicant under the provisions of the Policy; 6 [(n) the applicant has attempted to obtain or has obtained or has erroneously claimed Terminal Excise Duty, duty drawback, cash assistance benefits admissible to Importer-exporter Code holder or any other similar benefits from the Central Government or any agency authorised by the Central Government in relation to exports made by him on the basis of any false, fraudulent or misleading statement or any document which is false or fabricated or tampered with.] (2) The refusal of a 2 [licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] under sub-rule(1) shall be without prejudice to any other action that may be taken against an applicant by the licensing authority under the Act. 7 [(3) In case of any erroneous payment of Terminal Excise Duty, duty drawback, cash assistance benefits admissible to importer-exporter Code holder or any other similar benefits from the Central Government or any agency authorised by the Central Government in relation to exports made by him, the Director General or the licensing authority may, after giving to that person a notice in writing informing him of the details of erroneous payment for which recovery or adjustment of arrears or claims is to be made and after giving a reasonable opportunity of making a representation in writing within such time, as specified therein and, if that person so desires, of being heard, authorise: (a) recovery of benefits as arrears of land revenue; or (b) by adjustment against future claims after recording reasons in writing, provided the Adjudicating Authority is satisfied with the facts relating to erroneous payment.] ******************** Notes:- 1. Substituted vide Notification No. G.S.R 300(E), Dated 17-04-2015, in the heading before it was read as :- Refusal of licence 2. Substituted vide Notification No. G.S.R 300(E), Dated 17-04-2015, in the sub-rule (1) and (2) for the word licence 3. Inserted vide Notification No. G.S.R 300(E), Dated 17-04-2015 , in clause (c) of the sub-rule (1) after the word statement 4. Substituted vide Notification No. G.S.R 300(E), Dated 17-04-2015 , in clause (d) of the sub-rule (1) for the word goods 5. Substituted vide Notification No. G.S.R 300(E), Dated 17-04-2015 , for clause (f) of the sub-rule (1) before it was read as :- (f) the applicant is or was a managing partner in a partnership firm, or is or was a Director of a private limited company, having controlling interest against which any action is for the time being pending under the Act or rules and Orders made thereunder; 6. Substituted vide Notification No. G.S.R 300(E), Dated 17-04-2015 , for clause (n) of the sub-rule (1) before it was read as :- (n) the applicant has attempted to obtain or has obtained cash compensatory support, duty drawback, cash assistance benefits allowed to Registered Exporters or any other similar benefits from the Central Government or any agency authorised by the Central Government in relation to exports made by him on the basis of any false, fraudulent or misleading statement or any document which is false or fabricated or tampered with. 7. Inserted vide Notification No. G.S.R 300(E), Dated 17-04-2015 , after sub-rule (2)