The impugned orders demanding additional composition fee were without jurisdiction and illegal, and the court directed the respondent to grant extension of time prospectively and not demand any further amount.

Heard Mr.Adinarayana Rao, learned counsel for the petitioner, Mr.J.Madanagopal Rao, learned Senior Central Government Standing Counsel appearing for respondents 1 to 3 and Mr.T.Pramod Kumar Chopda, learned senior standing counsel for the fourth respondent.

2. This is the third round of litigation which the petitioner has initiated before this Court for virtually the same purpose. The issue, which falls for consideration in this writ petition lies in a narrow compass, that is to say as to whether the petitioner is required to pay a sum of Rs. 22,56,485/-, being the compensation fee for being entitled for extension of time to complete the export obligation in terms of the advance authorisation permission dated 23.08.2012. In terms of the said permission, the petitioner had time till 31.03.2014 to complete the export obligation as per the stipulation in DEEC licence. The petitioner was unable to do so and sought for extension vide application dated 05.01.2015. Undoubtedly, this application was not disposed of and was pending.

3. The petitioner followed up the said application by a representation dated 18.05.2017. In the meantime, the Customs Department, the fourth respondent herein, in whose favour a bond and Bank Guarantee were furnished, to ensure compliance of the conditions of advance authorisation, had encashed the Bank Guarantee, since the petitioner failed to produce Export Discharge Certificate from the third respondent. Thereafter, the second respondent issued show-cause notice dated 03.05.2017 under Section 14 for initiating action under Section 9(2) of the Foreign Trade (Development and Regulation) Act, 1992. The show-cause notice proposed as to why the petitioner’s name should not be placed under Denied Entry List (DEL) refusing issuance of further licence and renewal of old licence in terms of the Rule 3 of the Foreign Trade (Regulation) Rules, 1993 r/w. Section 9 of the Act. The petitioner submitted their reply to the show-cause notice vide letter dated 22.05.2017, wherein among other things, they have stated that they have taken up the matter with Policy Relaxation Committee, New Delhi (PRC) and requested time till middle of September 2017 to appear for adjudication of the show-cause notice. This request was not accepted or rejected, but an order was passed on 29.05.2017 placing the petitioner under the DEL. The petitioner requested for revocation of the said order vide representation dated 27.07.2017. Since the same was not considered, the petitioner filed W.P.Nos.21634 and 21636 of 2017, wherein the petitioner sought for removing their name from DEL and for seeking extension of time to comply with the export obligations in terms of Advance Authorisation dated 23.08.2012. The writ petitions were disposed of by a common order dated 16.08.2017 with a direction to consider the petitioner’s representation dated 22.05.2017 seeking extension of time, examine the bonafides of the representations in accordance with the relevant regulations and pass a speaking order within a time frame. The order was communicated by the petitioner to the respondents 1 to 3 vide representations dated 09.09.2017 and 20.09.2017.

4. Ultimately by communication dated 17.10.2014, the petitioner’s application for extension was held to be deficient since the petitioner has not furnished composition fee as per paragraph 4.42 of the Handbook of Procedures of Foreign Trade Policy 2015-20 and the petitioner was directed to produce supporting documents. The petitioner stated that they have already paid the composition fee Rs.41,027/- vide Demand Draft dated 27.12.2017. The said request was not considered and an order came to be passed, which was challenged by the petitioner in W.P.No.113 of 2018, which was filed to quash the order dated 16.11.2017 refusing to issue licence and placing the petitioner under DEL and for a consequential direction to consider the application made by the petitioner in accordance with Notification No.27 (RE-2012)/2009-201