Legal principle

Where an effective appeal remedy is available against an order before the appellate authority under Section 15 of the Foreign Trade (Development and Regulation) Act, 1992, an Article 226 writ petition filed without first exhausting that remedy is not sustainable, though the court may grant liberty to appeal and exclude the time spent before it for limitation.

Court decision

The writ petition was dismissed, with the court holding that an effective appeal remedy existed under Section 15 of the FTDR Act, 1992 and the petition was not sustainable without exhausting it. The petitioner was granted liberty to file an appeal before the appellate authority within 15 days of receipt of a copy of the order, with the period pending before the High Court to be excluded for limitation; no costs were awarded and the connected miscellaneous petitions were closed.

Facts

M/s Core Plasto Enterprises, a Chennai manufacturer of injection molded plastic components, held EPCG Authorization No. 0430011182 dated 08.05.2012 under Chapter V of the Foreign Trade Policy 2009-2014, under which capital goods could be imported at concessional customs duty subject to an export obligation. On non-fulfillment of that export obligation, the Deputy Commissioner of Customs, Chennai-II, issued a Recovery Notice dated 21.12.2020 directing payment of Rs.13,46,000 plus applicable interest under Section 143 of the Customs Act, 1962 (already under challenge in W.P.No.609 of 2021). The petitioner claimed to have a pending representation for the benefit of the DGFT amnesty scheme (Public Notice No.2/2023 dated 01.04.2023) before the Additional Director General of Foreign Trade, but the Joint DGFT passed the impugned order dated 15.05.2024 imposing penalty for non-fulfillment of the export obligation without considering it. The petitioner then filed this writ petition under Article 226 seeking a writ of certiorari to quash that order.

Key provisions

• Section 15, The Foreign Trade (Development and Regulation) Act, 1992 — Appeal.
• Section 143, Customs Act, 1962 — Power to allow import or export on execution of bonds in certain cases