The Gujarat High Court ruled that if a petitioner is given clean chit in SCN proceedings, concerned authority may be requested to consider e extension of Export Obligation period.
The petitioner, Maruti Printers is engaged in the business of printing press from the premise and respondent authority exercising powers and discharging the duties cast upon them under the provisions of the Foreign Trade (Development & Regulation), Act, 1992. The Principal Commissioner of Customs posted at the Nhava Sheava Custom House, duly appointed under the provisions of the Customs Act, 1962.
The Challenge is to this suspension of amendment sheet, which had extended two years of Export Obligation period with a further request to prospectively grant it for two years.
The suspension on the part of the respondent authority is in wake of nonfulfillment of the directions on the part of the petitioner to the communication dated December 24, 2018. After nearly a month from the non-compliance on January 22, 2019, there had been a suspension of the amendment sheet. This communication clearly speaks of the suspension if not the cancellation or rejection of grant of the extension of the Export Obligation.
This had come in wake of the inputs received from the DRI. The show cause notice pursuant to the said search operation and subsequent to the suspension of this is already given on 05.03.2019.
The division bench of Justices Sonia Gokani and Sangeeta K.Vishan said that Once having extended the period on 27.11.2018, without availing the opportunity, the grant of extension of Export Obligation period, cannot be cancelled.
However, the court further said that if there are certain suspicious documents noticed by the DRI, the authority concerned, if has chosen to suspend the same and has sought the detail from the petitioner, no interference is desirable. If the petitioner is given a clean chit in the proceedings of the show cause notice, it may request the concerned authority to consider the case of extending the Export Obligation period which has been suspended presently and it would be for the authority to consider such a request at an appropriate time, if the factual circumstances based on the substantive material eventually tilt in favour of the petitioner.
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