TaxTMI 
TaxTMI 
2016 (12) TMI 829
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....nt and Regulation) Act, 1992 (hereinafter referred to as "the FTDR Act"). 2. The petitioner claims that the entire show cause notice is issued at the behest and instance of the Director General, Directorate of Revenue Intelligence. In that regard, our attention is invited to paras 4 to 7 of the show cause notice, copy of which is at page 138 of the paper book. These paras appear at page 139 thereof. It is submitted that the show cause notice would not have been issued, but for a very detailed communication from the Directorate of Revenue Intelligence. That is issued sometime in June, 2016. Our attention is invited to paras 7.3 and 7.4 of that communication to submit that eventually the Principal Additional Director General holds the tran....
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....Additional Director General of Revenue Intelligence. Therefor, no useful purpose will be served by the petitioner submitting to the jurisdiction of the Additional Director General of Foreign Trade. 3. Mr. Shroff, learned senior counsel appearing for the petitioner, while reiterating the above contentions, points out that a sister concern of the petitioner entered into an agreement with a Swedish company and for purchase of certain goods. Relying upon the terms and conditions of the sale, it is submitted that the agreement to purchase the goods never fructified. It was not implemented. The petitioner's Director, who was also the Managing Director of Namco Corporation Limited discussed the issue with his cousin in Dubai having a compan....
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....e Department was eventually dropped. After all this, the petitioner suffered heavy losses, but could not recover and had to move an application before the BIFR. The reference before the BIFR also could not proceed in accordance with law. Several summonses were issued by the Directorate of Revenue Intelligence. Mr.Shroff then refers to the alleged hardship that was caused to the petitioner. It is submitted that in the above circumstances, intervention of the Hon'ble Supreme Court was sought in Writ Petitioin (Cri.) No. 66 of 2016 filed under Article 32 of the Constitution of India. It is submitted that out of sheer vengeance, the Directorate of Revenue Intelligence caused a communication to be issued to the Additional Director General of....
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....rade. That is dated 26th July, 2016. That is issued under section 14 of the FTDR Act. It is stated that the petitioner has obtained the authorisations under Zero Duty EPCG Scheme of the Foreign Trade Policy 2009-2014. At serial no. 2 of the condition sheets attached to these authorisations and amendments issued subsequently, the petitioner was under an obligation to export certain goods against these authorisations within a period of six years from the date of issue of these authorisations. The first authorisation is dated 9th December, 2010 and the second is dated 18th January, 2011. By referring to para 5.8 of the Handbook of Procedures Volume of 2009-2014, it is alleged that the petitioner was required to fulfill 50% of the export obliga....
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....provision for the development and regulation of foreign trade by facilitating imports and increasing exports. Vide Sub-Section (2) of section 3, the Central Government may also by order published in the Official Gazette, make provision for prohibiting, restricting or otherwise regulating, in all cases or in specified classes of cases and subject to such exceptions, if any, as may be made by or under the order, the import or export of goods or services or technology. All goods to which any order under Sub-Section (2) applies, shall be deemed to be goods the import or export of which has been prohibited under Section 11 of the Customs Act, 1962 and all the provisions of that Act shall have effect accordingly. Then, by Sub-Section (4) of secti....
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....ce, we do not think that we should interfere at this stage. All the more when there are powers of appeal conferred in the Central Government. 8. We have no doubt in our mind that if the contention raised as before us by Mr. Shroff are indeed raised and substantiated with material, which would be allowed to be produced on record of the adjudicating authority, then, the same would be duly noted and considered. The show cause notice has to be disposed of by a speaking order. Against such an order, there is a remedy of Aappeal and equally a review (see Sections 15 and 16). The petitioner can highlight that such a notice as impugned in the petition has been issued at the behest and instance of the Directorate of Revenue Intelligence and it is....