Foreign Trade Policy Provision Cannot Authorise Levy Of Interest u/s 28AA Of Foreign Trade Act: Kerala HC

The Kerala High Court has ruled that a provision under the Foreign Trade Policy cannot be used to levy interest under Section 28AA of the Foreign Trade (Development and Regulation) Act. This decision came after a challenge by a business entity that had been subjected to an interest charge due to delayed payments related to foreign trade obligations. The Court held that the foreign trade policy provisions cannot override statutory provisions relating to interest levy and that such charges must be specifically authorized by law. The ruling has far-reaching implications for businesses involved in international trade, ensuring that interest penalties are applied only under clear legal guidelines.