UNION OF INDIA & ORS. vs M/S. INDO-AFGHAN AGENCIES LTD.

The Supreme Court ruled that under Section 3 of the Imports and Exports (Control) Act, 1947, the Central Government has the authority to regulate imports and exports. The Court held that the Textile Commissioner violated principles of natural justice by reducing the import entitlement certificates without providing the respondents an opportunity to be heard or access to the evidence against them. Consequently, the High Court's decision to set aside the Textile Commissioner's orders was upheld, affirming the respondents' right to import licenses equivalent to 100% of the F.O.B. value of their exports unless a proper inquiry was conducted as per Clause 10 of the Scheme.