Levy of penalty for non-fulfilment of export obligation under ...

Penalty for export violation quashed due to lack of show cause notice & hearing, violating natural justice principles.

Case Laws     Customs

July 23, 2024

Levy of penalty for non-fulfilment of export obligation under Export Promotion Capital Goods (EPCG) authorizations was challenged. The specific case involved the petitioner/Company not being served with any show cause notice and no opportunity of personal hearing being given before passing the impugned order, resulting in violation of principles of natural justice. It was held that the appeal remedy is not a complete substitute for entertaining a Writ Petition under Article 226 of the Constitution when there is a violation of principles of natural justice. Since the petitioner was not served with any show cause notice and was not given an opportunity of personal hearing before passing the impugned order, the Writ Petition was maintainable. On this sole ground, the impugned order could not be sustained and was liable to be quashed. Consequently, the impugned order dated 24.08.2021 was quashed, and the Petition was allowed.

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