Reasoned order and fair hearing required before Denied Entity List action under foreign trade rules can stand.

An adverse placement in the Denied Entity List under Rule 7 of the Foreign Trade (Regulation) Rules, 1993 must be supported by recorded reasons and a consideration of the affected party's objections. A non-speaking communication that ignores the reply to the show-cause notice and omits reasons fails the requirement of a fair hearing and breaches natural justice. On that basis, the administrative action was unsustainable, set aside, and the matter had to be reconsidered afresh on merits after affording the petitioner a personal hearing.

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Issues: Whether the communication placing the petitioner in the Denied Entity List could be sustained when it was issued under Rule 7 of the Foreign Trade (Regulation) Rules, 1993 without recording reasons or considering the petitioner's objections, and whether the matter required remand for fresh consideration after hearing.

Analysis: Rule 7 of the Foreign Trade (Regulation) Rules, 1993 contemplates refusal of the relevant benefit only for reasons to be recorded in writing. The impugned communication was found to be a non-speaking order: it did not deal with the petitioner's reply to the show-cause notice and did not disclose reasons for the adverse action. Since the petitioner had raised detailed objections, the absence of reasons and the failure to consider those objections amounted to denial of a fair hearing and breach of natural justice.

Conclusion: The communication placing the petitioner in the Denied Entity List could not be sustained and was liable to be quashed. The matter was required to be remanded for fresh consideration on merits after affording the petitioner a fair hearing, including personal hearing.

Final Conclusion: The adverse administrative action was set aside and the respondents were directed to reconsider the matter afresh in accordance with law after hearing the petitioner.

Ratio Decidendi: An adverse order under Rule 7 of the Foreign Trade (Regulation) Rules, 1993 must be a reasoned order and cannot be sustained if passed as a non-speaking order without considering the affected party's objections and affording a fair hearing.

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