TaxTMI 
TaxTMI 
2006 (9) TMI 304
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed counsel for the parties and perused the record. 3. The writ petition was filed in the High Court challenging the order of the Director General of Foreign Trade (hereinafter referred to as the 'DGFT'), New Delhi dated 19-2-1999 by which the appellant's request for endorsement of transferability of the three licences in question, was refused. 4. The facts of the case are that to enable Indian exporters to compete effectively in the international market a scheme was framed by the Central Government named the 'Duty Exemption Scheme'. Under this Scheme, import of certain specified input items required for the manufacture and export of resultant products was allowed with duty exemption benefits. For getting this benefit, the ap....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the stipulated export obligation. The DGFT, vide order dated 19-2-1999, refused the request of the appellant for an endorsement of the transferability of the advance licenses. 7. Against the order of the DGFT dated 19-2-1999, the appellant filed a writ petition in the High Court, which was dismissed. Hence, this appeal by way of Special Leave. 8. Under the Scheme for Duty Exemption Endorsement in the EXIM Policy for the year 1997-2002, the advance licenses carry certain export obligations, and for certain goods the standard input and output norms (SION) for import and export for the grant of the duty-free licenses have been fixed, while for some other goods the norms have not been fixed. 9. The petitioner had appl....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... have been published the application is to be given to the Licensing Authority, and where they have not been published the application is to be given to the Committee which functions as a recommending authority to the Licensing Authority. 14. Clause 7.27 of the Duty Exemption Scheme reads as under : (i) "After export obligation has been fulfilled and the Undertaking redeemed and subject to fulfilment of other conditions as laid down in paragraph 7.25 above, the duty free license holder (except the Special Imprest License and Advance license used under paragraph 7.4) shall be allowed transfer of the license, provided the request for endorsement of transferability is made within 36 months of the issuance of license, by the lic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Ivory Board. 17. The DGFT was of the view that the license was granted to the appellant contrary to the Circular dated 31-3-1997 whereby the Licensing Authority was advised to issue advance licenses strictly as per the standard input output norms (SION) in respect of fish and marine products. 18. In our opinion, the view taken by the High Court as well as the DGFT was clearly erroneous in law and liable to be set aside. There is no dispute that the appellant was granted the advance licenses which were applied for. If there was any complaint that the licenses were not validly granted, then a show cause notice should have been issued to the appellant to show cause why the said licenses should not be cancelled, and thereafter c....