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2021 Supreme(AP) 124

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
ARUP KUMAR GOSWAMI, C. PRAVEEN KUMAR, JJ.
M/s. Rain CII Carbon (Vizag) Limited - Petitioner
Versus
Union of India (Through the Secretary) Ministry of Commerce and Industry, Government of India, Udyog Bhawan, New Delhi -110 003, and others - Respondent
WRIT PETITION Nos.979 & 1043 of 2020
Decided On : 03-03-2021

Advocates Appeared:
For the Petitioner: Mr. Devadatta Kamat, Sr. Counsel for Mr. Challa Gunaranjan
For the Respondent: Mr. N. Harinath, Assistant Solicitor General., Mr. Suresh Kumar Routhu, Mr. M.V.J.K. Kumar.

Point of law: Hon’ble Supreme Court had no occasion to consider import to a Special Economic Zone (SEZ). It is also submitted by him that the representations were mechanically rejected without even adverting to the contentions raised.

Headnote:

Special Economic Zones Act 2005 – Special Economic Zones Rules, 2006 – Prayers made in W.P. read as issue any Writ, order or orders or direction more particularly one in the nature of a writ of mandamus declaring that there is no prohibition on import of raw material i.e., Calcined Petroleum Coke (CPC) and Raw Petroleum Coke (RPC) into a Special Economic Zone, solely for the purposes of the manufacture, blending and re-export without the said goods being cleared for domestic usage in India under the Special Economic Zones Act 2005 and the Special Economic Zones Rules, 2006 – Direction to Respondent No.2 to consider the representations sent by the Petitioner and pass an order in a time bound manner and permit the Petitioner to import raw material i.e., Calcined Petroleum Coke (CPC) and Raw Petroleum Coke (RPC), into the SEZ only for the purposes of manufacturing, blending and re-export, subject to the compliance of the applicable environmental laws; and SEZ Act, 2005 and SEZ Rules, 2006 –Direction to Respondent No.3 to grant necessary permissions for importing of Calcined Petroleum Coke (CPC) under Clause 2.46 (Import for Export) of the Foreign Trade Policy 2015-2020, for Re-export after blending the same with the CPC produced by the Petitioner in the SEZ Unit, at the SEZ Unit or the Customs Bonded Warehouse – Pass any other further order (s) /direction (s) as this Hon’ble Court may deem fit and proper in the facts and circumstances of the case. – Issue any writ, order or orders or directions more particularly one in nature of a Writ of Mandamus declaring the action of Respondent No.2 in rejecting the representations of the petitioner vide impugned Orders as arbitrary and illegal, passed without any application of mind and same be set aside

Finding of court: Though in the order Hon’ble Supreme Court referred to the order and observed that outer limit for import of raw pet coke cannot exceed 1.4 M.T. per annum, outer limit of 0.5 M.T. per annum for import of CPC, as fixed by the order, was not mentioned. – But the same will make no difference. As the Hon’ble Supreme Court had rejected I.A., wherein prayer for enhancement of import limit of RPC and CPC was made, Court is of the considered opinion that the prayer made by the petitioner cannot be granted and therefore, submission made that the representations were rejected without any application of mind pales into insignificance

Result: Writ Petitions Dismissed

ORDER

Arup Kumar Goswami, J.

1. Heard Mr. Devadatta Kamat, learned Senior Counsel representing Mr. Challa Gunaranjan, learned Counsel for the petitioner and also heard Mr. N. Harinath, learned Assistant Solicitor General of India for respondent No.1; Mr. Suresh Kumar Routhu, learned counsel for respondent No.2 and Mr. M.V.J.K. Kumar, learned standing counsel for respondent No.3 in both the writ petitions.

2. Two cases viz., W.P.No.979 of 2020 and W.P.No.1043 of 2020 are listed together. Mr. Devadatta Kamat, learned Senior Counsel for the petitioner, has submitted that the point involved in both the writ petitions is identical and for the purpose of adjudication, W.P.No.979 of 2020 may be considered.

3. Prayers made in W.P.No.979 of 2020 read as follows:

    “(A) Issue any Writ, order or orders or direction more particularly one in the nature of a writ of mandamus declaring that there is no prohibition on import of raw material i.e., Calcined Petroleum Coke (CPC) and Raw Petroleum Coke (RPC) into a Special Economic Zone, solely for the purposes of the manufacture, blending and re-export without the said goods being cleared for domestic usage in India under the Special Economic Zones Act 2005 and the Special Economic Zones Rules, 2006

(B) Direction to Respondent No.2 to consider the representations dated 18 October 2019 and 22 October 2019 sent by the Petitioner and pass an order in a time bound manner and permit the Petitioner to import raw material i.e., Calcined Petroleum Coke (CPC) and Raw Petroleum Coke (RPC), into the SEZ only for the purposes of manufacturing, blending and re-export, subject to the compliance of the applicable environmental laws; and SEZ Act, 2005 and SEZ Rules, 2006;

(C) Direction to Respondent No.3 to grant necessary permissions for importing of Calcined Petroleum Coke (CPC) under Clause 2.46 (Import for Export) of the Foreign Trade Policy 2015-2020, for Re-export after blending the same with the CPC produced by the Petitioner in the SEZ Unit, at the SEZ Unit or the Customs Bonded Warehouse;

(D) pass any other further order (s) /direction (s) as this Hon’ble Court may deem fit and proper in the facts and circumstances of the case.

(E) Issue any writ, order or orders or directions more particularly one in nature of a Writ of Mandamus declaring the action of Respondent No.2 in rejecting the representations of the petitioner dated 18 October, 2019 and 22 October 2019 vide impugned Orders No.2 (20)/APSEZ/2017/933, dated 10 February, 2020 and No.2(20)/APSEZ/2017/934 dated 10 February 2020, as arbitrary and illegal, passed without any application of mind and same be set aside.”

4. Mr. Devadatta Kamat, learned Senior Counsel, has drawn the attention of the Court to the order dated 10.02.2020, which was passed on the basis of the representation dated 22.10.2019. The subject of the said representation is “Permission for import of Calcined Petroleum Coke for the SEZ Calciner plant”. There is another representation dated 18.10.2019 on the subject “Permission for import of Raw Petroleum Coke for the SEZ Calciner plant”, and the said representation was also rejected by separate order dated 10.02.2020.

5. Mr. Devadatta Kamar, learned Senior Counsel has drawn the attention of the Court to the order dated 09.10.2018 passed by the Hon’ble Supreme Court in W.P (s) (Civil) No (s).13029 of 1985, wherein the Hon’ble Supreme Court has made it clear that the imported raw material of Calcined Pet Coke (CPC) in the Aluminium industry cannot exceed 0.5 MT per annum in total. He has also drawn the attention of the Court to the observation of the Hon’ble Supreme Court in the above order that the imported raw pet coke for the purpose of producing calcined pet coke cannot exceed 1.4 MT per annum in total.

6. The learned Senior Counsel has also very fairly drawn our attention to two I.As filed by the petitioner in W.P. (C ) No.13029 of 1985 viz., I.A.No.1451 of 2019 and I.A.No.1847 of 2019.

    “In I.A.No.1451 of 2019, the prayer is made as follows:

(a)

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