Wait...
Search Global Export Import Trade Data
Recent Searches: No Recent Searches

HC ruling on penalty for offence under Foreign Trade Act .


Date: 15-04-2009
Subject: HC ruling on penalty for offence under Foreign Trade Act
 Chennai, April 13 An Offence alleged to have been committed by an exporter under the Foreign Trade (Development & Regulation) Act, 1992 (Central Act 22 of 1992) was punishable by award of penalty only in terms of the law which came into effect from June19, 1992, the Madras High Court has held.

Setting aside the impugned order dated December 29, 1998 of the Ministry of Commerce (Appellate Committee Cell), imposing higher penalties under the old Act (Imports & Exports [Control] Act, 1947), Mr Justice K. Chandru remitted back the issue to the Secretary, Ministry of Commerce, for fresh disposal in accordance with the new Act (Central Act 22).

The writ petitioner, Trimex Minerals Pvt Ltd, Chennai, an exporter of slates, granites, etc, while challenging the order dated December 29, 1998 of the Appellate Committee Cell, contended that to avail of the incentive under export/import policy for year 1992-97 by issue of ‘exim scrips’, they engaged a middleman informally to handle the matter for expeditious delivery of such scrips.

According to them, the said middleman had fabricated certain documents to obtain exim scrips from the Deputy Director General of Foreign Trade in Puducherry.

It was stated that the licensing authority found that the fraud was committed by the person who was acting as a liaison agent, but the petitioner could not whitewash their involvement in the crime.
Penalty

Accordingly, by the order dated January 19, 1996, a penalty of Rs 2 crore was imposed on the petitioner-company.

Aggrieved by the order, the petitioner contended that according to the amended law, the penalty for contravening the provisions of the Act was not exceeding Rs 1,000 or five times the value of goods over which any contravention had been made.
Petitioner’s claim

The petitioner further said that they had not committed any offence, and it was the action of the intermediary who was not authorised by them. If at all the petitioner was guilty of any contravention of the law, they would have to be proceeded only under the new Act.

The Additional Solicitor General submitted that whether under the old Act or the new Act, the petitioner had committed fraudulent transactions.

Their theory of some intermediary had independently committed such acts was not borne out by records.

The Judge held that since the respondents had imposed penalty according to the old Act, the impugned order of R-3 appellate committee was hereby set aside. The matter was remitted back to the Ministry for fresh disposal in accordance with Central Act 22 of 1992.


Source : Business Line

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 27-03-2026
Notification No. 05/2026-Central Excise
Corrigendum to Notification No. 06/2026-Central Excise dated 26.03.2026

Date: 27-03-2026
Corrigendum
Corrigendum to Notification No. 11/2026-Central Excise dated 26.03.2026

Date: 26-03-2026
Notification No. 11/2026-Central Excise
Seeks to prescribe rates of Road and Infrastructure Cess for petrol and diesel, when cleared for exports

Date: 26-03-2026
Notification No. 12/2026-Central Excise
Seeks to amend notification No.4/2019-Central Excise to exclude the provisions of the notification on petrol and diesel when cleared for exports.

Date: 26-03-2026
Notification No. 13/2026- Central Excise
Seeks to rescinderst while notification

Date: 26-03-2026
Notification No. 06/2026-Central Excise
Seeks to levy Special Additional Excise Duty on export of petrol and diesel.

Date: 26-03-2026
Notification No. 07/2026-Central Excise
Seeks to amend the Eighth Schedule to Finance Act, 2002 to insert Aviation Turbine Fuel in the Schedule and prescribe Special Additional Excise Duty on it

Date: 26-03-2026
Notification No. 8/2026-Central Excise
Seeks to prescribe an effective rate of Special Additional Excise Duty on Aviation Turbine Fuel when cleared for exports

Date: 26-03-2026
Notification No. 9/2026-Central Excise
Seeks to exempt Aviation Turbine Fuel from whole of Special Additional Excise Duty except when cleared for exports

Date: 26-03-2026
Notification No. 10/2026-Central Excise
Seeks to exempt applicable basic excise duty and Agriculture Infrastructure and Development Cess on petrol and diesel and basic excise duty on Aviation Turbine Fuel, when cleared for exports



Exim Guru Copyright © 1999-2026 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001