1. The appellant filed a Writ Petition under Article 226 of the Constitution of India before the Karnataka High Court, challenging the order imposing a penalty of Rs. 23,38,882/— under the provisions of Section 11(2) of the Foreign Trade (Development and Regulation) Act, 1992 (for short, ‘the FT Act’). The said Writ Petition was dismissed. By the impugned judgment, a Writ Appeal against the order of the learned Single Judge was dismissed.

2. The appellant was formerly known as Emmellen Biotech Pharmaceuticals Limited, which amalgamated with Karnataka Malladi Biotics Limited based on an order of the Bombay High Court dated 24th March 2009.

FACTUAL ASPECT

3. A few factual aspects will have to be set out. Karnataka Malladi Biotics Limited (for short, ‘Karnataka Biotics’) obtained an Export Promotion Capital Goods Licence (for short, ‘the licence’), which enabled it to import certain capital equipment at a concessional rate of customs duty. Under the licence, Karnataka Biotics was permitted to import capital goods worth Rs. 23,38,882/- equivalent to US$ 64,987 CIF value, subject to the condition of the appellant exporting the finished goods worth US$ 2,59,948 and earning an equivalent amo