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2019 (3) TMI 258 - HC - CustomsImposition of penalty - delay in fulfilling export obligation - extension of time sought - Held that:- It is evident that the petitioners have been regular in fulfilling their export obligations. For the subject export obligation there were difficulties which they highlighted, based on which they could not fulfil the export obligations in time. Yet when they sought a clarification about the consequences of not being able to fulfil these obligations in time, they have been informed that though the licence is issued under the Foreign Trade (Development and Regulation) Act, 1992, and without prejudice to the application of any other prohibition or regulation affecting the import of the goods which may be in force at the time of their arrival, still, when the petitioners brought to the notice of the authorities and prayed that there should be an extension granted to fulfil the export obligations, on 15121997 and 811998 the petitioners were informed that they must first complete the export obligation under the June, 1997 sight, as also the export obligation under the August, 1997 sight respectively and then their request will be considered. A careful perusal of para 8.19 of the Hand Book of Procedures (Vol. I), 19972002, as amended by the public notice, demonstrates that the Licensing Authority may grant extension in fulfilling the export obligation by a period of four months against one or more consignment/sight on payment of penalty of 1% on the unfulfilled FOB value of export obligation. Any request for extension beyond the period of four months can be considered only by a Committee headed by the Director General of Foreign Trade. Hence, implicit in the scheme of the export obligation is a power in the authorities to extend the time. Once there were amendments brought into force and the amendments being effective from 2481998, but the export obligations being fulfilled prior thereto, in the peculiar facts and circumstances, the petitioners should not have been called upon to pay the fine. Petition allowed.
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