Risky exporter tag must be reviewed within circular timelines, and cannot continue indefinitely on suspicion alone.

The circular on risky exporter cases required the authorities to decide a representation within prescribed timelines, with escalation if no decision was taken. The Court found those timelines were not followed and held that the risky exporter tag could not continue indefinitely on a mere investigative suspicion, as that would obstruct exports without adjudication. The representation was therefore required to be considered expeditiously on merits after affording a personal hearing.

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Issues: Whether the representation challenging the risky exporter tag required consideration within the timelines prescribed by the governing circular and whether the continuation of such tag could be sustained pending investigation.

Analysis: The circular governing risky exporter cases fixes a structured timeline for the authorities to act on the representation and provides a mechanism for escalation if no decision is taken within the stipulated period. The Court found that the department had not adhered to those timelines. It also distinguished the investigative process from adjudication and held that a risky exporter tag cannot be kept indefinitely, as that would interfere with exports on the basis of suspicion. The representation was therefore required to be decided expeditiously, after affording a personal hearing.

Conclusion: The representation was directed to be considered on merits within the time fixed by the Court, after personal hearing, in favour of the appellant.

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