Facts
The Petitioner, a garment manufacturer, obtained an Advance Authorization (AA) No. 0511005106 on 01.10.2021 to fulfill an urgent export order
Source reference: para. 3Due to technical glitches on the Respondents' part, the AA data was not transmitted to the Customs/ICEGATE portal, preventing the Petitioner from processing shipments under the AA scheme
Source reference: para. 5To avoid cancellation of the order, the Petitioner exported the goods under two Shipping Bills (Nos. 6482393 and 6483064) dated 03.12.2021 under the "zero scheme," while noting AA details in the invoices
Source reference: para. 5, 33The Policy Relaxation Committee (PRC) rejected the Petitioner's requests for relaxation and EODC (Export Obligation Discharge Certificate) through orders dated 03.01.2023, 20.10.2023, and 22.03.2024, citing a lack of "cogent reasons" for hardship and denying requests for a personal hearing
Source reference: para. 7-9Issues
Whether the impugned orders passed by the PRC, rejecting the petitioner’s request for relaxation, violated the principles of natural justice and contravened the Foreign Trade Policy (FTP).
Source reference: para. 25Law Applied
Paragraph 2.59 of the FTP, which vests the DGFT with the power to grant exemptions or relaxation on grounds of genuine hardship or adverse impact on trade
Source reference: para. 26-27Paragraph 2.60 of the FTP, which mandates that a specific request for a Personal Hearing (PH) should be considered for grievance redressal
Source reference: para. 28-30Principles from Kranti Associates (P) Ltd. v. Masood Ahmed Khan, which requires quasi-judicial and administrative authorities to record clear, cogent, and succinct reasons for their decisions
Source reference: para. 36-37Automotive Tyre Manufacturers Association v. Designated Authority, affirming that principles of natural justice must be read into statutory procedures unless expressly excluded
Source reference: para. 39Reasoning
The court found that the Petitioner was prevented from availing the AA scheme benefits solely due to a technical glitch (non-transmission of data to ICEGATE) beyond its control
Source reference: para. 31, 35The court observed that despite the Petitioner providing evidence—such as AA details mentioned in GST invoices and the urgency of the export deadline—the PRC failed to engage with these facts
Source reference: para. 33-34The court determined that the PRC’s orders were "mechanical" and amounted to "rubber-stamping" rather than an independent application of mind
Source reference: para. 37By repeatedly denying the Petitioner’s request for a personal hearing, the Respondents violated the procedural fairness contemplated under Paragraph 2.60 of the FTP and fundamental principles of natural justice
Source reference: para. 32, 41As the Respondents failed to file a reply, the Petitioner's assertions regarding the technical glitches remained uncontroverted
Source reference: para. 23, 40Holding
The Court answered the issue in the affirmative, holding that the impugned orders were vitiated by non-application of mind and violation of natural justice
The High Court set aside the orders dated 03.01.2023, 20.10.2023, and 22.03.2024. The matter was remanded to the competent authority for de novo consideration, with a specific direction to afford the Petitioner an effective opportunity of personal hearing and pass a fresh reasoned order. The writ petition was disposed of accordingly.
Source reference: para. 42-43, 45Original Court PDF
O C Sweaters LlpvsUnion Of India & Ors.
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