TMI Blog2016 (12) TMI 829X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the EPCG licences and their terms and conditions are not violated and still a show cause notice is issued only to please the Directorate of Revenue Intelligence. If indeed the EPCG terms and conditions are not violated, then, it will be open for the petitioner to produce such material as is permissible in law. Merely because the show cause notice is issued does not mean that it would result in imposition of penalty. Once all the opportunities are available, then, we do not think that we should interfere with the show cause notice. Petition dismissed - decided against petitioner. - Writ Petition No. 13101 of 2016 - - - Dated:- 5-12-2016 - S. C. Dharmadhikari And B. P. Colabawalla, JJ. Mr. D. B. Shroff - Senior Advocate with Mr. Sujay Kantawala and Mr. Brijesh Pathak for the petitioner Mr. B. B. Sharma, Mr. Pradeep S. Jetly for the respondent ORDER P. C. 1. By this petition under Article 226 of the Constitution of India, the petitioner is challenging the show cause notice issued by the Additional Director General of Foreign Trade, invoking the powers under the Foreign Trade (Development and Regulation) Act, 1992 (hereinafter referred to as the FTDR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned senior counsel appearing for the petitioner, while reiterating the above contentions, points out that a sister concern of the petitioner entered into an agreement with a Swedish company and for purchase of certain goods. Relying upon the terms and conditions of the sale, it is submitted that the agreement to purchase the goods never fructified. It was not implemented. The petitioner's Director, who was also the Managing Director of Namco Corporation Limited discussed the issue with his cousin in Dubai having a company, namely, M/s. Escorp Commodities LLC, UAE. On 20th November, 2009, the petitioner company entered into an agreement with M/s. Escorp Commodities LLC. for procurement of the complete, refurbished, restored to working condition and revamped to manufacture, the requisite final product, namely, plates of width up to 2500 mm and minimum thickness upto about 4mm with various assurances mentioned in the said agreement. On 20th April, 2010, the petitioner company entered into a further agreement with M/s. Escorp Commodities LLC. for supply of various rolls made of special alloy steel, suitable for rolling plates, out of mild steel/alloy steel slabs. In July, 2010, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that the writ petition is premature. It is directed against a show cause notice. The show cause notice would be adjudicated after which, there are adequate remedies under the FTDR Act and to challenge any adverse order. In such circumstances, any opinion on merits would influence the outcome of the investigation as also the proceedings in furtherance of the show cause notice. For all these reasons, it is submitted that the writ petition be dismissed. 5. We have perused carefully the show cause notice, copy of which is at page 138 of the paper book. That is issued by the Government of India, Ministry of Commerce, office of the Additional Director General of Foreign Trade. That is dated 26th July, 2016. That is issued under section 14 of the FTDR Act. It is stated that the petitioner has obtained the authorisations under Zero Duty EPCG Scheme of the Foreign Trade Policy 2009-2014. At serial no. 2 of the condition sheets attached to these authorisations and amendments issued subsequently, the petitioner was under an obligation to export certain goods against these authorisations within a period of six years from the date of issue of these authorisations. The first authorisati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of that Act shall have effect accordingly. Then, by Sub-Section (4) of section 3 and without prejudice to anything contained in any other law, rule, regulation, notification or order, no permit or licence shall be necessary for import or export of any goods, nor any goods shall be prohibited for import or export except as may be required under this Act or rules or orders made thereunder. Therefore, there is a power to make order and announce a Foreign Trade Policy. There is power to make order for development and regulation of foreign trade. That order can seek compliance with the provisions of the Customs Act, 1962 as well. Then, there are provisions enabling the Central Government to appoint any person to be the Director General of Foreign Trade and this official has to advise the Central Government in the formulation of the Foreign Trade Policy and he shall be responsible for carrying out that policy. There are also provisions for appointing a Director General and his assisting officers and subordinates. It is in exercise of such powers and particularly under section 11 that the imposition of penalty thereunder is contemplated. The penalty could be imposed under various s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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