M/S. Embio Limited vs Director General Of Foreign Trade

insc-2024-408 Supreme Court of India 13 May 2024 • CIVIL APPEAL NO. 6394 OF 2024; Special Leave Petition (C) No. 4974 of 2021 • 8 min read

Judges (2)

Parties (2)

Case Significance

M/S. Embio Limited vs Director General Of Foreign Trade is a Supreme Court of India decision dated May 13, 2024 (citation: insc-2024-408). The appellant challenged a penalty of Rs. 23,38,882 imposed under Section 11(2) of the Foreign Trade (Development and Regulation) Act, 1992, for failure to fulfil export obligations under an EPCG licence. The Supreme Court held that Section 11(2) is a penal provision requiring strict construction and applies only to imports/exports made in contravention of the Act, not to mere failure to export. The appeal was allowed and the penalty was set aside. The bench comprised Justices Abhay S. Oka and Ujjal Bhuyan. The judgment was delivered by Justice Abhay S. Oka.

Summary

The appellant challenged a penalty of Rs. 23,38,882 imposed under Section 11(2) of the Foreign Trade (Development and Regulation) Act, 1992, for failure to fulfil export obligations under an EPCG licence. The Supreme Court held that Section 11(2) is a penal provision requiring strict construction and applies only to imports/exports made in contravention of the Act, not to mere failure to export. The appeal was allowed and the penalty was set aside.

What was the outcome of M/S. Embio Limited vs Director General Of Foreign Trade?

The appellant challenged a penalty of Rs. 23,38,882 imposed under Section 11(2) of the Foreign Trade (Development and Regulation) Act, 1992, for failure to fulfil export obligations under an EPCG lice...

Judgment

Read the full judgment on the official India Courts portal.

Read on Indian Kanoon

Source: Indian Kanoon (insc-2024-408)