D.K.Jain, J.

1. Challenge in these two writ petitions is to the order passed by the Additional Director General of Foreign Trade, whereby he has upheld the order passed by the Assistant Director General of Foreign Trade, cancelling the Duty Exemption Pass Book, commonly known as DEPB Scheme, ab initio and levying penalty under Section 11(2) of the Foreign Trade (Development and Regulation) Act, 1992 (for short, #24;the Act#25;).

2. Since the basic ground, on which the said action was taken against both the petitioners is identical, for the sake of convenience, both the petitions are being disposed of by this common order. However, for the sake of ready reference. Extracts of C.W.P. No. 15278 of 2004 are taken as illustrative. These are as follows :

3. With a view to boost exports, the Government of India announces various incentives, which include exemption from payment of central excise duty, customs duty etc. and formulation of various schemes under the import and Export Policy, known as EXIM policy. The said policy is declared under Section 5 of the Act. It is declared for a period of five years, though amendments therein are carried out from time to time. DEPB scheme is