Limited judicial review upheld DGFT's refusal to allow domestic procurement and export-obligation relief under the Foreign Trade Policy.

Limited judicial review under Article 226 did not justify interference with the DGFT's refusal to allow domestic procurement of raw material or to grant export-obligation related reliefs. The decision was found to have been taken after hearing the applicant, and the process was held to be fair. Permission to source copper from the domestic market was inconsistent with the Foreign Trade Policy because advance authorisation covers duty-free import of inputs physically incorporated in the export product, subject to the actual user condition and non-transferability even after export obligation is met. No breach of the Foreign Trade Policy or Handbook of Procedures was shown.

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Issues: Whether the order of the Directorate General of Foreign Trade rejecting the request to permit procurement of raw material from the domestic market and refusing interference with the export-obligation related reliefs called for interference under Article 226 of the Constitution of India.

Analysis: The challenge was examined within the limited scope of judicial review over administrative decisions. The order under challenge was found to have been passed after affording an opportunity of hearing, and the decision-making process was held to be fair. The requested permission to source copper from the domestic market was inconsistent with the Foreign Trade Policy because advance authorisation permits duty-free import of inputs physically incorporated in the export product, and such imported inputs remain subject to the actual user condition and are not transferable even after fulfilment of export obligation. The Court also found no violation of the Foreign Trade Policy or the Handbook of Procedures warranting interference.

Conclusion: No interference was called for under Article 226, and the writ petition was rejected.

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