TaxTMI 
TaxTMI 
2025 (4) TMI 1416
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.... Shashvata U. Shukla appearing for the respondents on advance copy. 2. By this petition under Articles 226 and 227 of the Constitution of India, the petitioner has prayed for the following reliefs: "14. The Petitioner, therefore, prays that: A. That this Hon'ble Court be pleased to declare that Impugned Policy Circular No.06/2018 dated 22.05.2018 (Annexure-I) is ultra vires to the provisions of the Foreign Trade (Development & Regulation) Act, 1992 and the Foreign Trade Policy 2015-2020, as it unlawfully inserts additional conditions that curtail the benefits rightly claimed by the Petitioner under the extant policy provisions; B. That this Hon'ble Court be pleased to issue a Writ of Certiorari or a Writ in the....
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....tence of the DRI alongwith interest @15% from the date deposit of such amount till date of refund; F. for ad-interim relief in terms of prayer (D) above; G. for costs of the petition/application and others thereon and; H. for such further and other reliefs, as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case." 3. Brief facts of the case are as under: 3.1. The petitioner provides various port services and cargo handling services to various foreign companies/persons from its ports. 3.2. During the course of the business, the petitioner entered into 'Cargo Handling Service Agreement' with the customers for providing various services like co-ordination with Master/Agent of....
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....cation process. During the course of investigation by the DRI, the DGFT has adjudicated the show cause notice dated 23/10/2023 and passed order-in-original dated 16/04/2024 cancelling the scrips amounting to Rs. 1,81,24,518/- and also levied the penalty of Rs. 50,00,000/-. 3.6. According to the petitioner, the said order is under process of being challenged before the appropriate forum. 4. Learned advocate Mr. Hardik Modh for the petitioner submitted that the impugned show cause notice is issued mainly on the basis of the interpretation of Circular No.6 of 2018 by the respondent authorities in addition to the adjudication made by the DGFT in the order dated 16/04/2024 cancelling the scrip. It was therefore submitted that the impugned ....
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....s the order-in-original passed by the DGFT is not either stayed or set aside by any competent forum. It was further submitted that the contention of the petitioner regarding the reliance placed on the Circular No.6 of 2018 by the respondent authority is concerned, the same is required to be considered as per the decision passed by the DGFT while passing the order-in-original cancelling the SEIS scrips in question as the DGFT also has placed reliance upon the said Circular No.6 of 2018. It was therefore submitted that the petition is a premature petition and no interference may be made at this stage. 7. Considering the submissions made by learned advocates appearing for both the sides, it appears that the impugned show cause notice is bas....
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....under the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992), with respect to a reward or incentive scheme or duty exemption scheme or duty remission scheme or such other scheme bestowing financial or fiscal benefits, which may be utilised under the provisions of this Act or the rules made or notifications issued thereunder. Explanation 2: The provisions of this sub-section shall apply to any utilisation of instrument so obtained by the person referred to in this sub-section on or after the date on which the Finance Bill, 2012 receives the assent of the President, whether or not such instrument is issued to him prior to the date of the assent. (2) Where the duty becomes recoverable in accordance with the pro....
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.... Where the person referred to in sub-section (3) fails to repay the amount within the period of thirty days specified therein, it shall be recovered in the manner laid down in sub-section (1) of section 142." 9. On perusal of the above provisions, it is clear that the impugned show cause notice is in nature of recovery of consequential proceedings to the order passed by the DGFT which still holds the field and as such the respondent authorities are required to adjudicate the show cause notice in the facts of the case and no interference is called for at this stage. 10. The Hon'ble Supreme Court in catena of decisions has held that the Court should not interfere at the stage of issuance of show cause. Whereas in the facts of the case w....