2018 Supreme(Bom) 992
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
S.C. DHARMADHIKARI, BHARATI H. DANGRE, JJ.
Taj Agro Commodities Pvt. Ltd. And Others - Petitioner
Versus
Union of India through The Joint Secretary, Ministry of Commerce and Others - Respondent
Writ Petition (L) No. 1810, 2079, 1904, 1809, 1808, 1827 of 2018 with Chamber Summons (L) No. 239 of 2018
Decided on : 03-07-2018
Subject
FOREIGN TRADE - IMPORT POLICY
Act Referred
CONSTITUTION OF INDIA : Art.226, Art.14
CUSTOMS ACT : S.11
FOREIGN TRADE DEVELOPMENT AND REGULATION ACT : S.3, S.4, S.20, S.5
Headnote
Foreign Trade Regulation Act, 1992 - Section 3, 5 - Constitution of India,1950 - Article 226 - Central Excise and Salt Act, 1944 - Domestic tariff - Trade Notice - Grant Rule - Only question in se petitions under Article 226 of Constitution of India is where Government of India Ministry of Commerce and Industry Department of Commerce Directorate General of Foreign Trades Notification No and particularly Policy condition No.4 rein has been creating according to some Regional authorities of Directorate General of Foreign Trade a situation where clarification was required to be obtained from Government of India and particularly Ministry as aforesaid In writ petition argued by being Writ Petition (L) and Sons Private Limited a company incorporated under section 56 has filed this petition against Union of India through Joint Secretary of Commerce Director General of Foreign Trade (for short DGFT) Joint Director General of Foreign Trade Zonal Additional Director General of Foreign Trade and Commissioner of Customs - Writ petition itself clarifies that Union of India represented by this Ministry is entrusted with responsibility of formulation and enforcement of foreign trade policy and export-import guidelines- Directorate is a Directorate set up under Foreign Trade (Development and Regulation) Act 1992 (for short FTDR Act) – Held, It was held that se Notifications override circular - therefore aggregate Customs duty on goods cleared to domestic tariff area would not mean that payment of tax has been made- circular was issued on basis of representation of assessees and thus Notification could not have therefore stood in way of assessee - On or hand it was argued that Notification is statutorily issued and that has overriding effect by virtue of power conferred by sub-section (1) of section 5A of Central Excise and Salt Act 1944 - Hence no bifurcation such as yellow peas green peas dun peas and peas is n permissible - Item description was clear and this item was freely importable - However revised import policy restricts imports of all peas and therefore bifurcation as desired by cannot be made - Petitions stands disposed of
Advocate Appeared:
For the Petitioner: Mr. Vikram Nankani, senior counsel with Mr. Prithwiraj Chaudhary i/b Ms. Sharon Patole, Mr. V. Sridharan, senior counsel with Mr. Prakash Shah, Ms. Laxmi Menon, Mr. Prasad Paranjape, Mr. V.A. Thorat, senior counsel with Ms. Prachi Tatke i/b Kamlesh Tiwari, Mr. Shyam Dewani with Mr. Chirag Chanani i/b Dewani and Associates.
For the Respondent: Mr. Pradeep S. Jetly with Mr. Y.R. Mishra and Mr. D.P. Singh, Mr. Karan Adhik with Mr. Ram Ochani.
S.C. DHARMADHIKARI, J.
1. In Writ Petition (L) No. 1810 of 2018, an affidavit is filed and a stand, which is stated to be a common one in all the petitions, is taken. Since we have heard the parties at length and extensive arguments have been canvassed, we dispose of these writ petitions finally.
2. We grant Rule in all these writ petitions. Respondents waive service.
3. The only question in these petitions under Article 226 of the Constitution of India is whether the Government of India, Ministry of Commerce and Industry, Department of Commerce, Directorate General of Foreign Trade's Notification No.4 /215-220 dated 25th April, 2018, and particularly the Policy condition No.4 therein has been creating, according to some Regional authorities of the Directorate General of Foreign Trade, a situation where clarification was required to be obtained from the Government of India and particularly the Ministry as aforesaid.
4. We will take the facts from two petitions, one of which was argued by Mr. V.A. Thorat, learned senior counsel and another by Mr. Vikram Nankani, learned senior counsel.
5 In the writ petition argued by Mr. Thorat, being Writ Petition (L) No.2079 of 2018, Shadiram and Sons Private Limited, a company incorporated under section 56 has filed this petition against the Union of India through the Joint Secretary of Commerce, Director General of Foreign Trade (for short “DGFT”), the Joint Director General of Foreign Trade, the Zonal Additional Director General of Foreign Trade and the Commissioner of Customs.
6 The writ petition itself clarifies that the Union of India represented by this Ministry is entrusted with the responsibility of formulation and enforcement of foreign trade policy and export-import guidelines. The Directorate is a Directorate set up under the Foreign Trade (Development and Regulation) Act, 1992 (for short “FTDR Act”).
7 The petitioner is engaged in the business of import and export of agricultural products, including peas.
8 The petitioner entered into a contract with J.K. International Pty. Ltd. (the seller) for supply of yellow peas. A copy of this contract is annexed to the petition and marked as Exhibit-A. In terms of the contract, the petitioner says that he made the agreed advance payment of USD 100000 on 16th April, 2018, which is evidenced by a copy of the receipt and annexed as Exhibit-B. Then the petitioner made an application to the fourth respondent to register this contract against which advance payment was made prior to 25th April, 2018, by a letter, copy of which is at Exhibit-C dated 17th April, 2018.
9 In terms of the powers conferred under the FTDR Act, the second respondent amended the import policy pertaining to import of peas (yellow peas) by Notification dated 25th April, 2016. The emphasis in the writ petition is that this policy changed the categorization from free to restricted with regard to the subject product and further on the conditions mentioned in this Notification.
10 Then, it is claimed that in terms of this Notification, the petitioner was informed according to it by the DGFT officers that as a contract is entered into prior to 25th April 2018, for which the advance payment was made prior to this date, that is eligible to be registered with the officers of the DGFT as per the procedure prescribed. Then, there is reliance placed on a trade notice, copy of which is at Exhibit-E dated 9th May, 2018. It is stated that after the petitioner's application was processed, the Registration Certificate was granted on 14th May, 2018.
11 The complaint is that in total contrast to the earlier trade notice dated 9th May, 2018, as also contrary to the condition stipulated in the Notification dated 25th April, 2018, the impugned trade notice dated 18th May, 2018, has been issued and that curtailed what was the stipulation earlier and as understood by the trade so also by the DGFT. Meaning thereby, only those contracts against which full or 100% advance payment was made prior to 2