9911796707
TMI Blog2001 (2) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... Adjudication order was passed on 3-3-1998 and an appeal preferred by the petitioner before the Appellate Committee of the respondent was also dismissed by the Committee. 3. In the writ petition the petitioner has impugned the order passed by the Appellate Committee as well as the order passed by the Adjudicating Authority. 4. Mr. Hazarika learned Counsel for the respondent has vehemently contended that the approval for setting up of the industry of the petitioner was granted on the basis of condition attached to the Letter of Intent. On the basis of the said Letter of Intent Mr. Hazarika has contended that there was shortfall in the export, the capital goods were imported by the petitioner without payment of import duty und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erson from all or any of the following i.e. importing any goods or receiving licences or allotment of the imported goods through the State Trading Corporation of India. The Mineral and Metal Trading Corporation of India, or any other similar agency and direct, without prejudice to any other action that may be taken against him in this behalf, that no licence or allotment of imported goods shall be granted to him and he shall not be permitted to import any goods for a specified period under this Order : - (a) if his application for licence is at any time found to be not in conformity with any provision of this Order; or (b) if such application is found to contain any false fraudulent or misleading statement; or (c) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice there was no allegation of misuse of the imported goods. Therefore, the order passed by the Director General of Foreign Trade was without jurisdiction under Section 4-I(1)(a) of the Act. 8. I have given my careful considerations to arguments advanced by learned Counsel for the parties. From the bare perusal of the show cause notice, it has been mentioned "the unit commenced their production in March, 1990 and have made imports of capital goods and raw material for Rs. 102.88 lakhs and made exports to the tune of Rs. 59.64 lakhs resulting in net foreign exchange loss of Rs. 43.24 lakhs. The unit achieved value addition of (-) 26.56% against the stipulated value addition of 26.56%". Nowhere in the show cause notice it has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usand rupees, whichever is more, whether or not such goods or materials have been confiscated or are available for confiscation." From the bare reading of the aforesaid Section until and unless allegations were made in the show cause notice that the goods imported under the OGL licence has been misutilised penalty cannot be imposed under Section 4-I(1)(a) of the Imports and Exports (Control) Act, 1947. Any violation of condition for licence i.e. failure to achieve value addition and for non-fulfilment of export obligations action could have been resorted by the Department under Clause 8 of the Import (Control) Order, 1955. Nowhere in the said show cause notice it has been mentioned that there was misutilisation of the imported capital goo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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