Legal principle

An order confirming a show cause notice proposal under Section 14 r/w Section 8(1) of the Foreign Trade (Development and Regulation) Act, 1992 without furnishing a relied-upon document sought by the noticee is, prima facie, passed in gross violation of the principles of natural justice.

Court decision

The court granted only interim relief: it observed that, prima facie, the impugned order appeared to have been passed in gross violation of the principles of natural justice, stayed the impugned order for a period of four weeks, and posted the matter to 10.09.2026 for the respondent's counter and further orders. No final decision on the writ petition was rendered.

Facts

Regent Defence and Engineering Systems Ltd. challenged, by writ petition under Article 226, an Order in Original F.No. 04/36/021/00101/AM03 dated 08.07.2026 passed by the Joint Director General of Foreign Trade, Chennai, and a consequential Order for refusal of licence (Denied Entities List order) dated 10.07.2026. The impugned action flowed from a Show Cause Notice dated 26.02.2026 issued under Section 14 r/w Section 8(1) of the Foreign Trade (Development and Regulation) Act, 1992, following which the petitioner's IEC was marked on the Denied Entities List. The extract does not specify the goods involved. The petitioner had asked for a copy of a letter of the Additional Commissioner of Customs dated 29.05.2024, but the proposal was confirmed without furnishing it.

Key provisions

• Section 8(1), The Foreign Trade (Development and Regulation) Act, 1992 — Suspension and cancellation of Importer-exporter Code Number.
• Section 14, The Foreign Trade (Development and Regulation) Act, 1992 — Giving of opportunity to the owner of the goods (including the goods connected with services or technology), etc.