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DGFT empowered to Initiate proceedings in case of violation of Exemption Notification: Gujarat HC [Read Judgment]

DGFT - COVID-19- Delhi - Taxscan

The Gujarat High Court has held that in the case of violation of exemption notification and advance authorization license by any company, the Director-General of Foreign Trade (DGFT) is empowered to initiate a legal proceeding.

The Appellant Rajhans Impex Pvt. Ltd. is a company which is engaged in the manufacturing of brass rods or hollow rods, etc. the company is engaged in the regular exports of final products as also supplying to 100% Export Oriented Unit (EOU) by following the procedure prescribed by law. Further, on the completion of such deemed export and the receipt of export obligation discharge certificate, a request was made to the issue advance authorization with the office of Joint Director General of Foreign Trade (DGFT).

The issues raised in this case was whether the Joint Director General of Foreign Trade (DGFT) is empowered to initiate the proceedings in the case of violation of the exemption notification or not?

The Division Bench of  Justice S.R. Brahmbhatt and Dr. Justice A.P. Thaker held that the Director-General of Foreign Trade (DGFT) is empowered to initiate a legal proceeding in the case of the violation of the exemption notification. Further, the bench observed that the Central Board of Excise Department has not sanctioned any refund or rebate of the duty paid on the supply of Export Oriented Unit (EOU).

To Read the full text of the Judgment CLICK HERE
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