Court orders expeditious consideration of petitioners' application under Foreign Trade Act

The High Court directed the Additional Director General of Foreign Trade to consider the petitioners' application within two weeks, providing them with a hearing and issuing a reasoned order. This decision was made in light of the pending appeal before CESTAT against the earlier order and the lack of a stay. The writ petition was disposed of with no costs awarded, emphasizing the need for a fair review process due to the prolonged adverse impact on the petitioners under the Foreign Trade Act.

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Issues:
Challenge to order dated 29th May, 2012; Non-consideration of representations by respondent authority; Pending appeal before CESTAT against order dated 14th March, 2012; Lack of stay against the order dated 14th March, 2012; Relief sought by petitioners.

Analysis:
The petitioners challenged the order dated 29th May, 2012, issued by the Deputy Director General of Foreign Trade, declaring the petitioner firm a defaulter under Rule 7 of the Foreign Trade (Development & Regulations) Act, 1992. This challenge stemmed from the fact that all proceedings initiated by the Directorate of Revenue Intelligence had been dropped by an adjudication order dated 14th March, 2012, by the Commissioner of Customs. The petitioners sought the quashing of the order dated 29th May, 2012, due to this discrepancy.

The petitioners contended that despite making several representations before the Additional Director General of Foreign Trade, the respondent authority, none of their representations were considered. The last representation was made on 2nd January, 2019, which further fueled the challenge against the order dated 29th May, 2012. The failure to address these representations added to the basis for seeking relief through the legal process.

The respondent authority highlighted that an appeal had been filed by the Directorate of Revenue Intelligence, Kolkata, against the order dated 14th March, 2012, which was pending before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). Additionally, it was clarified that no stay had been granted by the CESTAT against the order dated 14th March, 2012, up to the date of the court proceedings. This information was crucial in understanding the legal landscape surrounding the case.

In light of the above arguments and clarifications, the High Court directed the Additional Director General of Foreign Trade to consider the application made by the petitioners on 2nd January, 2019, within a period of two weeks from the communication of the court's order. The respondent authority was instructed to provide the petitioners with an opportunity for a hearing, consider their submissions, and issue a reasoned order. The court emphasized the need for a fair review, especially given the absence of a stay against the order dated 14th March, 2012, and the prolonged adverse impact on the petitioners under the Foreign Trade (Development & Regulation) Act, 1992.

The writ petition (W.P. No.56 of 2019) was disposed of by the High Court, with no order as to costs. The parties were advised to apply for an urgent xerox certified copy of the order if required, upon complying with the usual undertakings.

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