JUDGMENT

RANGANATHAN, J.:- Import Trade Control was introduced in India as a war-time measure in the early stages of the Second World War, initially by a notification issued in exercise of the powers conferred under the Defence of India Rules. The primary object of notification was to conserve foreign the exchange resources and restrict physical orts so as to reduce the pressure on the 1imited available shipping space. To start with, the import of only 68 commodities, mainly consumer items, were brought under control. Subsequently, as foreign exchange resources came under pressure, import control was extended to cover other commodities as well.

2. Soon after the second world war came to an end, the control of imports and exports was statutorily provided for. The Imports and Exports (Control) Act, 1947 (18 of 1947) came into force with efffect from 25th March, 1947, initially for a period of three years and was extended from time to time. The Act was substantially amended by the Imports and Exports (Control) Amendment Act, 1976. Section 3 of the Act is relevant for our present purposes. It reads:

"3. Powers to prohibit or restrict imports and exports - (1) The Central Government may, b