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TMI Blog2019 (9) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, the DGFT may refuse to grant or renew the licence if it is of the view that any of the reasons as set out in Rule 7(1) of the Rules are established. And, he is required to pass an order specifically stating the said reason. In the present case, it is alleged that the petitioner has contravened the Act and thus the licence can be refused for the reasons as stated in Rule 7(1)(a) of the said Rules - Similarly, in terms of Rule 10 of the Rules the DGFT may, by an order in writing, cancel the licence if the licensee has contravened any law relating to customs or foreign exchange or the rules and regulations relating thereto. In either case, it would be essential for the DGFT to arrive at a firm conclusion regarding violation of the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tide; Styreine Butadine Co-Polymer; Polysterene; Veeprene PG/TPR Compound/TPE Compund; Chlorinated Polythlene; Polymethyl Meta Acrylate; Styrolex; PVC Resin, and Titanium Dioxide for using the same to manufacture certain products for export. The petitioner claims that it had fulfilled its export obligation in terms of the advance authorization and had applied to the Directorate General of Foreign Trade (DGFT) for issuance of the export obligation discharge certificate. It is the petitioner s grievance that the said application has not been decided as yet. The petitioner had also applied for renewal of the advance authorizations. However, the same were not accepted and deficiency letters were issued indicating that the Directorate of Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... XX XXXX XXXX XXXX (4) Where any duty has not been levied or not paid or has been short-levied or short-paid or erroneously refunded, or interest payable has not been paid, part- paid or erroneously refunded, by reason of, - (a) collusion; or (b) any wilful misstatement; or (c) suppression of facts, by the importer or the exporter or the agent or employee of the importer or exporter, the proper officer shall, within five years from the relevant date, serve notice on the person chargeable with duty or interest which has not been so levied or not paid or which has been so short-levied or short-paid or to whom the refund has erroneously been made, requiring him to show caus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial or specialised agencies; (e) any action against the applicant is for the time being pending under the Act or rules and orders made thereunder; (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; (g) the applicant fails to pay any penalty imposed on him under the Act; (h) the applicant has tampered with a licence; (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 obtain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed a breach of any of the conditions of the licence; or (c) the licensee has tampered with the licence in any manner; or (d) the licensee has contravened any law relating to customs or foreign exchange or the rules and regulations relating thereto. 10. Although, it is stated that the investigation is underway, it is obvious from the contentions made on behalf of the DRI that the same are nowhere near completion. The petitioner on the other hand claims that it has not violated any provisions of the Foreign Trade (Development and Regulation) Act, 1992, or, any conditions of the advance authorization. 11. There is no provision in the Act or the Rules that would entitle the DGFT to withhold the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14. The Learned Counsels for the parties have also not been able to show any provisions of law which required the DGFT to defer its proceedings merely on the ground that the DRI has initiated investigation against any particular entity. 15. In view of the above, this Court considers it apposite to direct the DGFT to take an informed decision within a period of six months from today. It is expected that the DRI would be able to provide the DGFT concrete material, if any, regarding any contravention, if found. As stated above, applications of the petitioner cannot be deferred indefinitely. 16. The deficiency letters calling upon the petitioner to cure the deficiency are clearly untenable, as the only reason provided in a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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