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2016 (7) TMI 860 - HC - CustomsLevy of penalty on the directors when there is no charge in the show cause notice or imposing the penalty. - Violation of conditions of Export Promotion Capital Goods Scheme [EPCGS] - export obligation could not be fulfilled - Held that:- The show cause notice does not appear to have been addressed to the petitioners who are the directors nor does it lay down any proposal for imposing of the penalty. Held that:- the show cause notice dated 09.09.2003 though titled to be a show cause notice under Section 14 and 11(2) of the FTDR does not fulfill the requirement of Section 11(2) in as much as it concerns the petitioner directors. Firstly as seen from the show cause notice the same is addressed to the noticee firm. Secondly the show cause notice is not directed towards the petitioner directors. Thirdly the proposed action under the show cause notice is for cancel/suspension the importer/exporter code and no penalty either on the company or the Directors is proposed. Fourthly no role or act is specified in the show cause notice by which the directors could be said to have abetted or attempted to make any export or import in contravention of any provisions of the FTDR or rules and order made thereunder or the Foreign Trade Policy. Fifthly so far as the petitioners are concerned no opportunity of hearing is given therefore there is clear violation of principle of natural justice. By merely providing the notice that the contents be brought to the notice of the Directors who may submit their response would not be sufficient notice to them. In the notice no allegations were made against the Directors. In this view of the matter the show cause notice is no show cause notice in the eye of law and therefore the consequential orders are also required to be nullified. - Penalty set aside - Decided in favor of petitioner.
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