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2018 (5) TMI 66 - HC - CustomsJurisdiction of Joint Director of Foreign Trade to adjudicate SCN - cancellation of licence u/s 9(4) of the Foreign Trade (Development and Regulation) Act, 1992 - Duty Free Credit Entitlement Scheme (DFCE scrips) - imposition of penalty u/s 11(2) of the Act - Held that: - under sub-section (4) of Section 9 of the Act, the Director General or the officer authorized under sub-section (2) would have the power for good and sufficient reasons to suspend, cancel any licence, certificate, scrip or any instrument bestowing financial or fiscal benefits granted under the Act. The powers under sub-section (4) of Section 9 thus, concurrently vest in the Director General as well as the Officer authorized by him. The authorized officer would be exercising powers under the delegated authority. There is no pecuniary limitation in exercising such powers. In terms of section 13, the Joint Director could not have adjudicated the question of penalty where the value of the goods or service or technology covered by the authorization exceeded ₹ 25 crores - This pecuniary limit therefore, would take the present matter out of the purview of the Joint Director. The notice issued was a composite notice. The issue of cancellation of licence and imposition of penalty were closely interlinked. He could not have and, he in fact had not severed the notice into a part which he could adjudicate upon and one which he could not - The Director General of Foreign Trade, therefore, committed no error in quashing the order under Section 16 of the Act under which, the Director General has the power on his own motion or otherwise, call for the records or any proceeding of any decision or order made by any officer subordinate to him and satisfy himself as to the correctness, legality or propriety of such decision or order and make such order as may be deemed fit. Petition dismissed.
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