Regularisation of export-obligation default: coercive recovery and arrest stayed until the competent authority decides the representation.

Pending consideration of a representation seeking regularisation of an alleged export-obligation default, coercive enforcement under the Customs Act and the Foreign Trade (Development and Regulation) Act was held in abeyance. The representation was directed to be treated as duly filed before the licensing authority and decided in accordance with law within three months. The earlier High Court directions were maintained, investigation was permitted to continue, but no coercive recovery of customs duty or arrest could be taken until the competent authority decided the representation.

---

---

Issues: Whether, pending consideration of the respondents' representation, coercive action under the Customs Act, 1962 and the Foreign Trade (Development and Regulation) Act, 1992 could proceed and whether the representation for regularisation of non-fulfilment of export obligation was to be treated as filed and decided.

Analysis: The order proceeds on the footing that the respondents had sought regularisation of the alleged default and that the earlier High Court directions required consideration of such representation. The representation was directed to be treated as filed before the licensing authority, and the department was directed to decide it in accordance with law within three months. The earlier directions of the High Court were maintained. It was also clarified that investigation could continue, but no coercive steps were to be taken until a decision was rendered on the representation, including no coercive recovery of customs duty and no arrest under the concerned statutes.

Conclusion: The respondents were granted protection against coercive action pending decision on the representation, and the department was required to decide the matter within the stipulated time.

Final Conclusion: The matter was disposed of by preserving the High Court's directions with a clarification that coercive enforcement would remain in abeyance until the respondents' representation was decided.

Ratio Decidendi: Where regularisation of an alleged export-obligation default is to be considered, coercive recovery and prosecution should not proceed until the competent authority decides the representation in accordance with law.

---