The condition requiring irrevocable Letters of Credit for export duty exemption does not apply to exporters who do not utilize this mechanism, ensuring compliance with constitutional rights.

JUDGMENT :

Ramesh Sinha, CJ.

1 Heard Mr. Ajay Agrawal, Mr. Naveen Bindal and Ms. Katyayani Vishnupriya, learned counsel for the petitioner. Also heard Ms. Anmol Sharma, learned counsel for the respondents No. 1 and 2 as well as Mr. Anumeh Shrivastava, learned counsel for the respondent No. 3.

2 By this petition under Article 226 of the Constitution of India, the petitioner seeks for the following relief(s):

“10.1 This Hon'ble Court may be pleased to issue a writ of prohibition or appropriate writ, order or direction in nature thereof, prohibiting Respondents from collecting any export duty on export of Rice, without insisting upon compliance of second condition of condition no. 6 of exemption Notification No. 50/2023-Customs dated 25.08.2023, in the circumstances so warranting; and

10.2 Direct return of deposit of Rs. 2,01,28,295/- already made by the Petitioner "under protest" and "without prejudice" with appropriate interest thereon, after holding the Petitioner having satisfied the condition for exemption being condition no. 6 under exemption Notification No. 50/2023-Customs dated 25.08.2023, in the circumstances so warranting; and

10.3 In the alternative, this Hon'ble Court may be pleased to issue a writ of certiorari appropriate writ, order or direction in nature thereof, quashing second condition of condition no. 6 of exemption Notification No. 50/2023-Customs dated 25.08.2023, in the circumstances so warranting, as being wholly arbitrary, unjust, invalid, irrational, capricious as being violative of Article 14, 21 and Article 19(1)(g) of the Constitution of India; and

10.4 For such further and other reliefs as the nature and circumstances of the case may require;”

3 The facts, as projected by the petitioner are that the petitioner is engaged, inter alia, in the trading of rice, cycle parts, ceramic tiles etc. The petitioner, inter alia, exports the rice out of India. It has been exporting rice out of India since the year 2012. The petitioner is Government of India recognized "3-star export house". The export of rice from India happens through various means, in which export proceeds are realized through different methods. Some of the common known methods of realization of export proceeds are through "documentary collections", "open account", "escrow account", "credit cards", "consignment transfer", "wire transfer", "cash in advance", "cash upon delivery" etc., to name a few. The export can also be made through "Letter of Credit" (for short, the LoC). Each of the aforesaid method of realization of export proceeds are legitimate and valid in the eyes of law and there is no prohibition or restriction in this regard, on any of the methods employed. It is also possible that a mix of aforesaid methods of realization of sale proceeds are employed in the trade. The petitioner exports the rice and realizes the exports proceeds by the methods of "cash upon delivery", which it has been using since the year 2012. In between 14.08.2023 to 25.08.2023, the consignments of parboiled rice of the Petitioner, which is meant for export had entered the customs station of ICD CONCOR Naya Raipur, within the State of Chhattisgarh. In relation to the said consignments, no order permitting clearance for export, known as "Let Export Order" has been issued by the "Proper Officer appointed under the Customs Act, 1962. This is undisputed between the parties. The Central Government, Ministry of Finance (Department of Revenue) issued a Notification bearing No. 49/2023-Customs dated 25.08.2023 under Section 8(1) of the Customs Tariff Act, 1975 levying export duty of 20% on export of parboiled rice falling under Chapter Heading 1006 30 10 of the Customs Tariff Act, 1975. This was done by inserting an entry being SL No. 6C in the Second Schedule to the Customs Tariff Act, 1975, which schedules the item, which are subject to export duty. Aforesaid Notification came into force on 25.08.2023 (Annexure P-1). On the heels of the aforesaid Notification came another Not