2003 (3) TMI 734 - HC - Customs

Court directs fair evaluation of renewal application for ornamental granite exporter, upholding principles of natural justice.

M/s Shrishaila Granites & Marbles Ltd. Versus Union of India

M/s Shrishaila Granites & Marbles Ltd. Versus Union of India - TMI Issues:1. Renewal of license/permission for exporting ornamental granite slabs.2. Validity of permission granted by the government.3. Consideration of application for renewal.4. Adverse order passed against the petitioner.5. Non-consideration of petitioner's explanation.6. Respondents' response to the application for renewal.Analysis:1. The petitioner, a company engaged in the production and export of ornamental granite slabs, sought a writ of mandamus to renew its license/permission for a further 10 years. The company had complied with the terms and conditions of the permission granted by the government and had been exporting granite slabs to various countries. Despite the permission being granted for a 10-year period, the 1st respondent issued a notice stating non-implementation of the project, leading to a dispute regarding the validity of the license (Annexure-D). The petitioner provided evidence of exports and correspondence with the department to support its claim for renewal.2. The petitioner also applied for renewal of the license in 2002 (Annexure-N), but no decision was made on the application. The court noted that an adverse order (Annexure-K) was passed against the petitioner without proper consideration of their objections and explanations. The court set aside Annexure-K due to the lack of consideration of the petitioner's response, emphasizing the need for a fair review process.3. During the hearing, both parties presented their arguments, with the respondents indicating a willingness to consider the petitioner's application and representations on their merits. The court acknowledged the petitioner's export activities post the issuance of Annexure-D and directed the respondents to evaluate the application (Annexure-N) and other representations objectively, disregarding the adverse order, and make a decision within twelve weeks.4. The judgment highlighted the importance of considering all relevant information and objections before making decisions that could impact a party's rights. By setting aside the adverse order and directing a reevaluation of the renewal application, the court emphasized the principles of natural justice and fair administrative practices. The writ petition was allowed, with each party bearing their respective costs, bringing clarity to the renewal process for the petitioner.