9911796707
TMI Blog2019 (9) TMI 1168X X X X Extracts X X X X X X X X Extracts X X X X ..... Chennai, granted Importer Exporter Code Registration, herein after called IEC Registration to the petitioner. While so, the second respondent issued a show cause notice dated 15.05.2019, as to why fiscal penalty should not be imposed under Section 11(3) of the said Act, without prejudice to any other action that may be taken against noticee under the said Act or any other law in force for the time being. The allegation made in the show cause notice is that the petitioner has involved in illegal imports of bulk drugs from unregistered manufacturing facilities in China and the Authority has reason to believe that the Noticee has imported with malafide interest which attracts the action under Section 11(2) of the Foreign Trade (Development and Regulation) Act, 1992 read with the Rule of Foreign Trade (Regulations) Rules 1993. It is also stated in the show cause notice that the above said act of the petitioner attracts action under Sections 8 of the Foreign Trade (Development and Regulation) Act, 1992 to suspend the IEC. b) The petitioner attended the personal hearing on 17.05.2019 and sought for time by eight weeks, since the details sought for by the Authorities are in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investigated by the concerned Authorities. The petitioner involved in illegal trade operations and is liable for action under Section 8 of the FTDR Act. The show cause notice issued to the petitioner leading to the impugned order has clearly mentioned the cause of action and the petitioner firm imported bulk drugs from China from unregistered sources. As directed by this Court earlier, the impugned order was passed by the first respondent himself. As against the impugned order, a right of appeal is available to the petitioner under Section 15 of the above said Act. Therefore, the writ petition is not maintainable without exhausting the statutory remedy of appeal. 4. Mr.Mohan, learned counsel for the petitioner, after reiterating the above contentions raised by the petitioner submitted that an order passed by the Authority, punishing a person must contain reasons and findings. In the absence of any such reasons and findings, a punitive order cannot withstand the scrutiny of this Court, as the same is to be construed as a non speaking order. After saying so, the learned counsel invited this Court's attention to the show cause notice dated 15.05.2019, previous order passed in ori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orts or exports specified goods or services or technology, in contravention of any provision of this Act or any rules or orders made thereunder or the foreign trade policy, the Director General or any other officer authorised by him may call for the record or any other information from that person and may, after giving to that person a notice in writing informing him of the grounds on which it is proposed to suspend or cancel the Importer-exporter Code Number and after giving him a reasonable opportunity of making a representation in writing within such reasonable time as may be specified in the notice and, if that person so desires, of being heard, suspend for a period, as may be specified in the order, or cancel the Importerexporter Code Number granted to that person. (2) Where any Importer-exporter Code Number granted to a person has been suspended or cancelled under sub-section (1), that person shall not be entitled to [import or export any goods or services or technology] except under a special licence, granted, in such manner and subject to such conditions as may be prescribed, by the Director General to that person." 9. Perusal of the above said provision would show tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r undertaking any export/import activities under Foreign Trade Policy (FTP) and Hand Book Procedures (HBP). 1.2 Whereas, it has been brought to the notice of this office that the Noticee has involved in illegal imports of bulk drugs from unregistered manufacturing facilities in China. 2.1 Therefore, the undersigned has reason to believe that the Noticee has imported with malafide interest which attracts the action under Section 11(2) of the Foreign Trade (Development & Regulation) Act 1992 (FTDR Act) read with the Rule of Foreign Trade (Regulations) Rules 1993. 2.2 This act of the firm attracts action under Section 8 of the Foreign Trade (Development & Regulation) Act, 1992, as amended from time to time to suspend the Importer Exporter Code No.0402001630. 3.1 The reply to this notice along with documentary evidence for having undertaken all import of drugs and excipients only in compliance with the terms and conditions of the import policy (as amended from time to time) during the period from 16.4.2002 to 14.5.2019 should reach this office within 2 days hereof. In case; the Noticee wants to avail an opportunity of Personal Hearing to explain their case personally, they may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estigation thereof and the nature of the violation of the provisions of the laid down Acts the IEC is suspended. Except saying so, the first respondent has not given a specific reason or finding as to why the IEC granted to the petitioner is liable for suspension. Needless to state that the above observation of the first respondent which is general in nature cannot be considered as sustainable grounds in the absence of specific details. 12. No doubt, the first respondent has stated that he ordered the suspension in view of the report submitted by the CBI and on going investigations thereof. I find that the above statement of the first respondent in the impugned order lacks any material details and particulars to support the order of suspension. Needless to say that the Licensing Authority, if intends to suspend or cancel the license, should state specific details and particulars as to the reasons which made him to take such action. In the absence of any such finding or reason, such order cannot be sustained. At the same time, this Court makes it very clear that it is not expressing any view on the merits of the allegations made against the petitioner and the response given by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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