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12. The Development Commissioner, VSEZ upon consideration of facts vide order dated 21st December, 2011 cancelled the two GSP certificates dated 29th March, 2010. Penalty of Rs. 66.30 crores under Section 11(2) of the F.T. Act, being the value of the American origin biodiesel, which was three times undue profit earned by the petitioner, was also imposed. Personal penalty of Rs.3.30 crores under Section 11 (2) of F.T. Act was imposed on Mr. Motturi Srinivas Prasad, Chairman, Chief Executive Officer and Director of the petitioner. Penalty of Rs. 50 lakhs was imposed on Mr. S.V.H. Rao, Director and Chief Executive Officer of the Unit. Importer- Exporter Code of the petitioner was directed to be suspended for a period of 1 year from the date of the issue of the order or till the penalties were paid, whichever was later.

15. As the Importer-Exporter Code of the petitioner had been suspended, the petitioner had moved an application before the Appellate Authority to enable them to re-export 18047.687 MT biodiesel to avoid demurrage/loss. Appellate Authority vide order dated 23rd March, 2012 accepted this request, subject to the petitioner furnishing a bank guarantee equal to the value of the goods or in alternative furnish suitable financial security by way of first charge on assets equal to the value of the goods. This order was challenged by the petitioner in Writ Petition (Civil) No. 1788/2012 before this High Court stating that its assets were charged with SEZ authority. Writ Petition (Civil) No.1788/2012 was disposed of vide order dated 29th March, 2012 observing that the order dated 23rd March, 2012 had required the petitioner to furnish suitable security to the satisfaction of the Development Commissioner, VSEZ and this authority should be approached with offer of security bond.

19. The application for clarification was disposed of by the Appellate Authority vide order dated 11th June, 2012 stating that the order dated 21st December, 2011 passed by the Deputy Commissioner VSEZ under challenge before it had not been set aside and the Adjudicating Authority had been asked to deliberate on the additional issues raised.

20. Petitioner had also filed Writ Petition (Civil) No. 2016/2012 challenging order dated 6th April, 2012 rejecting the bond submitted for export of biodiesel and direction to submit bank guarantee of Rs. 50 Crores and security bond covering the balance of Rs. 20 Crores by securitization of unencumbered assets. This writ petition was disposed of vide order dated 12th April, 2012 granting some relief by modifying impugned order dated 23rd March, 2012 in terms of directions given therein. The petitioner had filed application, C.M. No. 5366/2012 in Writ Petition (Civil) 2016/2012, which was disposed of vide order dated 2nd May, 2012 directing the respondents to treat the Importer-Exporter Code of the petitioner as valid for limited purpose of re-export of goods and subject to compliance of all the rules and regulations.

(3) Where any person, on a notice to him by the Adjudicating Authority, admits any contravention, the Adjudicating Authority may, in such class or classes of cases and in such manner as may be prescribed, determine, by way of settlement, an amount to be paid by that person.

(4) A penalty imposed under this Act may, if it is not paid, be recovered as an arrear of land revenue and the Importer-exporter Code Number of the person concerned, may, on failure to pay the penalty by him, be suspended by the Adjudicating Authority till the penalty is paid. (5) Where any contravention of any provision of this Act or any rules or orders made thereunder or the export and import policy has been, is being, or is attempted to be, made, the goods together with any package, covering or receptacle and any conveyances shall, subject to such requirements and conditions as may be prescribed, be liable to confiscation by the Adjudicating Authority. (6) The goods or the conveyance confiscated under sub-