TaxTMI 
TaxTMI 
2019 (9) TMI 83
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....r. 2. The petitioner has filed W.P. (C) 1979/2019, inter alia, impugning the deficiency letters calling upon the petitioner to remove the deficiencies for the consideration of its application for revalidation of advance authorization. 3. The petitioner was issued advance authorization for import of products including Tin Ingot/Tin Alloy; Methyl Tin Mercaptide; Styreine Butadine Co-Polymer; Polysterene; Veeprene PG/TPR Compound/TPE Compund; Chlorinated Polythlene; Polymethyl Meta Acrylate; Styrolex; PVC Resin, and Titanium Dioxide for using the same to manufacture certain products for export. The petitioner claims that it had fulfilled its export obligation in terms of the advance authorization and had applied to the Director....
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....nder the Customs Act, 1962 (hereafter 'the Act'). He also referred to Section 28 Act, which concerns recovery of duty not levied, not paid or short levied or short paid. Sub-section (4) of Section 28 of the Act is relevant and reads as under :- "28. Recovery of duties not levied or not paid or short-levied or short paid or erroneously refunded. - XXXX      XXXX      XXXX      XXXX (4) Where any duty has not been levied or not paid or has been short-levied or short-paid or erroneously refunded, or interest payable has not been paid, part- paid or erroneously refunded, by reason of, - (a) &nb....
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....grant or renew a licence if - (a) the applicant has contravened any law relating to customs or foreign exchange; (b) the application for the licence does not substantially conform to any provision of these rules; (c) the application or any document used in support thereof contains any false or fraudulent or misleading statement; (d) it has been decided by the Central Government to canalise the export or import of goods and distribution thereof, as the case may be, through special or specialised agencies; (e) any action against the applicant is for the time being pending under th....
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....rs or any other similar benefits from the Central Government or any agency authorised by the Central Government in relation to exports made by him on the basis of any false, fraudulent or misleading statement or any document which is false or fabricated or tampered with. (2) The refusal of a licence under sub-rule (1) shall be without prejudice to any other action that may be taken against an applicant by the licensing authority under the Act. XXXX      XXXX      XXXX      XXXX 10. Cancellation of a licence. - The Director General or the licensing authority may by an order in writing cancel any licence gran....
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....e petitioner has contravened the Act and thus the licence can be refused for the reasons as stated in Rule 7(1)(a) of the said Rules. Plainly, if the DGFT comes to the conclusion that the petitioner had violated or contravened any law relating to customs or foreign exchange, it would undoubtedly be entitled to refuse the grant of renewal of licences, albeit, by recording its reasons in writing. However, it cannot defer its decision indefinitely. 13. Similarly, in terms of Rule 10 of the Rules the DGFT may, by an order in writing, cancel the licence if the licensee has contravened any law relating to customs or foreign exchange or the rules and regulations relating thereto. In either case, it would be essential for the DGFT to arrive....