Reckitt Benckiser India Private Limited Vs Union of India & Ors. (Delhi High Court)
The Delhi High Court quashed a communication issued by the Directorate General of Foreign Trade (DGFT) placing an importer in the “Denied Entity List” after holding that the action was taken without complying with principles of natural justice and the statutory requirements under Section 8 of the Foreign Trade (Development and Regulation) Act, 1991.
The appeal arose from an order of the Single Judge directing the appellant to pursue statutory remedies against an order dated 27.08.2024 cancelling Service Exports from India Scheme (SEIS) scrips and imposing a penalty of ₹10 lakh for alleged misdeclaration. The appellant accepted that the challenge to cancellation of scrips and penalty could be pursued through remedies under Sections 15 and 16 of the Act. However, the appellant separately challenged a communication dated 12.09.2024 by which its Importer-Exporter Code (IEC) was marked in the “Denied Entity List.”
The appellant argued that the communication effectively prevented it from carrying on import and export business and was issued without notice or hearing. It contended that Section 8 of the Act requires issuance of a written notice specifying grounds for proposed suspension or cancellation of IEC and also mandates an opportunity to make a representation and be heard.
