TaxTMI 
TaxTMI 
2026 (5) TMI 1045
X X X X Extracts X X X X
X X X X Extracts X X X X
....he learned Single Judge was an order dated 27.08.2024 passed by the Deputy Director of Foreign Trade whereby the Service Exports from India ("SEIS") scrips issued to the Appellant under the Free Trade Policy 2015-2020 were cancelled and a penalty of Rs.10,00,000/- was imposed on the Appellant for obtaining the said scrips by misdeclaration. Another prayer made in the Writ Petition before the learned Single Judge was for setting aside the communication dated 12.09.2024 whereby the Appellant was informed of its inclusion in the "Denied Entity List". 4. The learned Senior Counsel for the Appellant states that insofar as the Impugned Order cancelling the scrips and imposing penalty on the Appellant is concerned, the Appellant shall take recourse to the appropriate statutory remedy available under Section 15/16 of the Act. He, however, submits that relegating the Appellant to take recourse to the appellate remedy even against the Order dated 12.09.2024 by the learned Single Judge is not sustainable for the reason that the said order / communication dated 12.09.2024 was passed in flagrant violation of the principles of natural justice. 5. The learned Senior Counsel for the Appellan....
X X X X Extracts X X X X
X X X X Extracts X X X X
....der dated 27.08.2024 may be subjected to challenge by the Appellant by taking recourse to the remedy available under Section 15/16 of the Act. 8. As regards the Communication dated 12.09.2024, which was also challenged before the learned Single Judge in the proceedings of the Writ Petition, nothing could be pointed out on behalf of Respondents demonstrating that adequate and effective opportunity of hearing was afforded to the Appellant before passing the said order / issuing the Communication dated 12.09.2024. 9. At this juncture, our attention has been drawn to a Show Cause Notice dated 30.10.2023 ("SCN") which has been annexed as Annexure A-14 to the Appeal and on the said basis, it has been stated that Clause 8(c) of the said SCN clearly required the Appellant to show cause as to why appropriate orders in respect of IEC may not be passed. On the aforesaid count, it has been argued by learned Counsel for the Respondents that there is no violation of the principles of natural justice. She has also stated that Clause 9 of the said SCN dated 30.10.2023 also provided an opportunity of hearing to the Appellant as well and, therefore, the Communication dated 12.09.2024 cannot be....
X X X X Extracts X X X X
X X X X Extracts X X X X
....person and may, after giving to that person a notice in writing informing him of the grounds on which it is proposed to suspend or cancel the Importer-exporter Code Number and after giving him a reasonable opportunity of making a representation in writing within such reasonable time as may be specified in the notice and, if that person so desires, of being heard, suspend for a period, as may be specified in the order, or cancel the Importer-exporter Code Number granted to that person. (2) Where any Importer-exporter Code Number granted to a person has been suspended or cancelled under sub-section (1), that person shall not be entitled to 2 [import or export any goods or services or technology] except under a special licence, granted, in such manner and subject to such conditions as may be prescribed, by the Director General to that person." 13. A perusal of the afore-quoted Section 8 of the Act reveals that suspension and cancellation of IEC Number can be resorted to where any person has contravened any of the provisions of the Act or any Rules or orders made thereunder or the foreign trade policy or any other law for the time being in force relating to central excise o....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., any person or entity is not authorized to engage in the business of import or export without obtaining the Importer-exporter Code Number and in a situation where such IEC Number is marked to "Denied Entity List", such an entity in respect of which such communication is issued is legally barred from making any exports or imports. 17. Such a marking, as has been made by the Communication dated 12.09.2024, not only deprives the person who was having a valid IEC Number, to engage in the business of import and export, but also deprives the said person / entity of certain incentives / benefits which may be available under various schemes. In such a situation, any marking of an importer / exporter to "Denied Entity List" virtually amounts to civil death and, therefore, the legislature has been conscious enough to have taken an adequate safeguard by enacting Section 8 of the Act, which unambiguously provides for not only issuance of SCN by mentioning the grounds of intended action of suspension / cancellation, but also affording an opportunity of making a representation and hearing to the person / entity concerned. 18. So far as the submission made by learned Counsel for the Respon....