2019 (8) TMI 393 - HC - Customs

Renewal of LOA issued to the petitioner - two star export house certificate - failure to start operation from the allotted of land and office - principles of natural justice - HELD THAT - Without expressing any opinion on the merits of the matter and having regard to the facts, we find that the order of the appellant court is not a reasoned order. Accordingly, we set aside the order of the appellate court. The appellate court will grant one opportunity of hearing to the petitioner. The petitioner would be entitled to produce such documents which they deem appropriate. Petition allowed by way of remand.

Summary

Issues:
1. Renewal of LOA for Export House.
2. Non-renewal of LOA and possession taken.
3. Lack of reasoned order by the Appellate Court.
4. Request for one opportunity of hearing.

Issue 1: Renewal of LOA for Export House
The petitioner was awarded an Export House No.0006 in 2004 and was allotted a plot based on their export turnover. The Development Commissioner awarded a two-star export house certificate to the petitioner in 2005. The LOA was renewed twice in 2016 with conditions, but the petitioner did not start business activities due to various reasons, including illness and market conditions. An appeal against non-renewal was rejected in 2017.

Issue 2: Non-renewal of LOA and possession taken
The Appellate Court did not renew the LOA due to the non-functional status of the unit since 2010-11. The petitioner requested an opportunity to explain the situation, citing financial and personal difficulties. The court noted the lack of reasoning in the Appellate Court's order, which led to setting aside the order and granting one opportunity of hearing to the petitioner.

Issue 3: Lack of reasoned order by the Appellate Court
The court highlighted the necessity of orders to be supported by cogent reasoning, as per the Supreme Court's ruling. The lack of a reasoned order in the Appellate Court's decision led to setting it aside and granting the petitioner a chance to present their case with appropriate documents for a new decision within six weeks.

Issue 4: Request for one opportunity of hearing
The petitioner's counsel requested a mercy petition due to the petitioner's past record and current challenges. The court considered the request for one opportunity of hearing as a mercy petition and directed the Appellate Authority to pass a reasoned order after the hearing.

In conclusion, the court set aside the Appellate Court's order, granted the petitioner one opportunity of hearing, and directed a new decision within six weeks with protection for the subject property until a final decision is made. The writ petition and related motions were disposed of with these directions.