Importer-Exporter Code cancellation requires statutory notice and hearing before any valid cancellation can be sustained

Cancellation of an Importer-Exporter Code must follow the statutory procedure under the Foreign Trade (Development and Regulation) Act, 1992, including notice, disclosure of grounds and a reasonable opportunity to respond before suspension or cancellation. Where the record does not show that cancellation-specific proceedings were properly initiated, the authority cannot sustain the cancellation on that basis. The appropriate course is to commence proceedings in accordance with law, issue a fresh show cause notice and pass a reasoned order after hearing the affected party.

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Issues: Whether the cancellation of the Importer-Exporter Code could stand without adherence to the procedure under Section 8 of the Foreign Trade (Development & Regulation) Act, 1992 and whether fresh show cause proceedings were required.

Analysis: The dispute arose from a proposed suspension and later cancellation of the Importer-Exporter Code in the context of alleged failure to discharge export obligations under EPCG licences. The statutory scheme relied upon by the petitioner required notice, disclosure of grounds, and a reasonable opportunity to make a representation before suspension or cancellation of the code. Since the record did not show that proper proceedings were initiated specifically for cancellation of the code, the appropriate course was to require the jurisdictional officer to commence proceedings in accordance with law.

Conclusion: The cancellation could not be sustained without compliance with the statutory procedure, and the authority was directed to issue a fresh show cause notice and pass a reasoned order after hearing the petitioner.

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