Court affirms dismissal of writ petitions challenging show cause notice on DEPB licenses.

The Court upheld the dismissal of writ petitions challenging a show cause notice alleging fraud in DEPB licenses. The appellants were directed to provide explanations within four weeks, with the liberty to raise the plea of limitation. Relying on previous decisions, the Court emphasized that disputed factual issues cannot be resolved through affidavits alone. The Division Bench rejected arguments that the show cause notice was not maintainable in writ proceedings. The writ appeals were dismissed, affirming the learned Judge's decision, and appellants were instructed to comply with the directives within the specified timeline.

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Issues: Challenge to show cause notice regarding alleged fraud in DEPB licenses, dismissal of writ petitions by learned Judge, reliance on Division Bench decisions and Supreme Court decision, inability to challenge show cause notice directly in High Court.

In the present case, the primary issue involved the challenge to a show cause notice issued by the respondents alleging serious fraud in the issuance of DEPB licenses by the DGFT, resulting in the appellants benefiting from concessional duty. The show cause notice called for an explanation as to why the licenses should not be canceled, and the imported goods cleared using fake and forged licenses should not be liable for confiscation under relevant sections of the Customs Act, along with demands for foregone duty, interest, and penalty.

The writ petitions challenging the show cause notice were disposed of by the learned Judge, who relied on a previous decision of the Court to emphasize that disputed questions of fact cannot be resolved based solely on affidavits and counter-affidavits. The Judge dismissed the writ petitions and directed the appellants to provide their explanation within four weeks, allowing the respondents to proceed in accordance with the law and pass appropriate orders. The appellants were also granted the liberty to raise the plea of limitation, leaving it to the respondents to address all points in compliance with the law.

The appellants sought to rely on various Division Bench decisions and a Supreme Court decision to argue that the show cause notice was not maintainable and could be set aside in the writ proceedings. However, the Court did not accept this argument, noting that in the cited decisions, proceedings had followed orders from adjudicating authorities and appellate tribunals before reaching the Division Bench and the Supreme Court. The Court emphasized that serious disputable questions of fact could not be determined based solely on affidavits and counter-affidavits, as presented in the case before them.

Ultimately, the Court found no flaw in the learned Judge's conclusion to dismiss the writ petitions and direct the appellants to submit their explanation within four weeks. Consequently, the writ appeals were dismissed, with the appellants instructed to comply with the directions of the learned single Judge within the specified timeline. The Court highlighted that the directions of the learned single Judge would continue to be in effect, and the connected Miscellaneous Petitions were closed as a result of the judgment.

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