2009 (6) TMI 574 - HC - Customs

High Court upholds blacklisting under Foreign Trade Rules; no procedural impropriety found.

EAST INDIA PRODUCE LTD. Versus JOINT DIRECTOR GENERAL OF FOREIGN TRADE

The Calcutta High Court upheld the validity of a blacklisting order issued under the Foreign Trade Development Rules, 1993, against a company that failed ... EXIM – Black Listing- Non issuance of licence under DEPB Scheme. Assessee black listed due to non-fulfillment of export obligation required under EPCG Licence granted earlier. No substance in assessee pleading that impugned order for black listing passed without reasonable opportunity to assessee. Held that- as SCN issued and reply thereto considered and then only order passed, no procedural impropriety in decision making process. Writ application dismissed. Issues:Challenge to blacklisting order under Foreign Trade Development Rules, 1993Procedural impropriety in decision-making processAnalysis:The judgment delivered by Debasish Kar Gupta, J. of the Calcutta High Court pertains to a writ application challenging the order of blacklisting dated March 15, 2000, issued under paragraph 7(I)(k) of the Foreign Trade Development (Regulation) Rules, 1993. The petitioner, a company granted an E.P.C.G. license in 1995 for exporting Ferrous Industrial Castings, failed to meet the export obligation, leading to a show cause notice in 1998. Subsequently, the respondent-authority blacklisted the petitioner, preventing further license issuance and rejecting their application under the DEPB Scheme due to the blacklisting.Upon examination, the court found that the petitioner was given a reasonable opportunity to present their case, and the impugned order was passed after considering the petitioner's reply. The court determined that there was no procedural impropriety in the decision-making process leading to the blacklisting order. Consequently, the court dismissed the writ application, with no order as to costs, and directed the provision of a certified copy of the order to the parties upon request and compliance with formalities.In conclusion, the judgment upholds the validity of the blacklisting order under the Foreign Trade Development Rules, 1993, based on the petitioner's failure to fulfill export obligations despite being given a chance to respond. The court's analysis focused on the procedural fairness of the decision-making process, ultimately leading to the dismissal of the writ application challenging the blacklisting order.