1995 (6) TMI 28 - HC - Customs

Court dismisses Writ Petition over export obligation fraud, upholding licensing integrity.

The Court dismissed the Writ Petition filed by the petitioner seeking directions to fulfill export obligations under advance import licenses obtained ... Duty Exemption Scheme/Advance Licence - Misuse of - Writ jurisdiction Issues:Violation of export obligation under advance import licences; Fraud and misrepresentation in obtaining licences; Regularization of imported goods subject to export obligation fulfillment; Request for Writ to permit export obligation fulfillment.Analysis:The judgment revolves around the petitioner's violation of export obligations under advance import licences obtained through fraud and misrepresentation. The petitioner secured licences for importing polyester fiber against advance licenses but sold the goods in the Indian market instead of utilizing them for export. The authorities found that the supporting manufacturers mentioned in the licences were non-existent entities, and the petitioner attempted to export cotton yarn by misrepresenting it as synthetic polyester blended yarn.The Customs authorities served a notice for violating export obligation provisions, leading to the cancellation of the advance licenses. The petitioner challenged this cancellation through an appeal, which partially upheld the cancellation while allowing for the regularization of imported goods already cleared, subject to fulfilling export obligations. The petitioner then filed a Writ Petition under Article 226 of the Constitution seeking directions to fulfill export obligations.The Court rejected the petitioner's plea, emphasizing that the petitioner obtained the licenses through fraud and misrepresentation. The Court noted that the petitioner's primary motive in seeking a Writ was to avoid penalties imposed by Customs authorities for breaching license conditions. The Court highlighted that the petitioner sold the imported goods in the Indian market for a significantly higher value than the import value, indicating dishonest conduct. Consequently, the Court dismissed the Writ Petition, stating that the petitioner was not entitled to any relief and discharged the rule with costs.In conclusion, the judgment underscores the importance of upholding export obligations under advance import licenses and condemns fraudulent practices in obtaining licenses. The Court's decision to dismiss the Writ Petition serves as a deterrent against dishonest conduct in international trade transactions and reinforces the consequences of breaching licensing conditions.