The government can make amendments in the Import Policy for the years 1985-88 by issuing public notices/amendment orders etc.

( 1 ) THE challenge in this petition is to the legality and vires of the public notice No. 119-ITC (PN)/85-88 dated 26th September 1986 issued by the Ministry of Commerce, Import Trade Control, by which amendments were made in the policy relating to the import of the spices, that is, (i) cinnamon/cassia and (ii) cloves. By the said public notice the amendment made was that the items of the afore-mentioned spices was deleted from appendix 6 and it was added in Part A appendix 5 as items 32-A.

( 2 ) ON 1st April 1986 an order No. 49/85-88 was issued in exercise of the powers conferred by section 3 of the Imports and Exports (Control) Act, 1947 by the Central Government whereby general permission (OGL 15/86) was given to import into India from any country except the union of South Africa/ South West Africa goods of the description specified in the schedule annexed to the order subject to the conditions mentioned therein. The schedule contains the items cinnamon/cassia and cloves (serial No. 10 ).

( 3 ) ON the same date, another order No. 40/85-88 under the heading Open General Licence No. 6/86 was issued under section 3 of the Imports and Exports (Control) Act, 1947 by the Central Government which gave general permission to import into India from and country except the union of South Africa and South West Africa the goods of the description specified in appendix 5 of Import and Export Policy, 1985-88 (volume 1) by designated public sector (canalising) agencies mentioned in the appendix. We may notice here that the said appendix before the amendment made therein did not cover the spices cinnamon and cloves.

( 4 ) ON 26th September 1986 a public notice No. 119-ITC (PN)/85-88 was given informing the general public that the amendments/corrections as specified therein shall be made in the policy. One of the amendments was deletion of cloves and cinnamons from appendix 6 of the policy (which pertains to OGL to general public) and addition of the said items in part A of appendix 5 (which pertains to canalised items ). On 26th September 1986 an order under section 3 of the Act No. 63/85-88 was made deleting the entries relating to cloves and cinnamons from the schedule appended to OGL 15/86. On 6th October 1986 another public notice was issued deleting the entries relating to cloves and cinnamons from list 4 of appendix 6 of the policy.

( 5 ) THE State Trading Corporation which is one of the public sector (canalising) agencies imported the spices cinnamons and cloves between 23rd January 1987 and 31st March 1987.

( 6 ) TO appreciate the contention of Mr. R. K. Anand, learned counsel for the petitioner, we may reproduce the relevant portion of section 3 of the Imports (Control) Order, 1955, and it reads as under :

"3. Restriction of Import of certain goods.- (1) Save as otherwise provided in this order, no person shall import lany goods of the description specified in Schedule I, except under and in accordance, with a licence or a customs clearance permit granted by the Central Government or by any Officer specified in Schedule II. "

( 7 ) THE contention of Mr. Anand is that the government could only have made an amendment in order No. 40/85-88 by issuing an order under section 3 and that since there is no order under section 3 amending appendix 5, the addition of the items of cloves and cinnamons in appendix 5 by issuing a public notice is not valid. The counsel to fortify his argument contended that an order under section 3 was issued for deleting the entries relating to cloves and cinnamons from OGL 15/86 which proves that the amendments and additions in appendices 5 and 6 could only be made by an order under section 3 and not by issuing public notices.

( 8 ) THE Imports and Exports promotion policy for the years 1985-88 is contained in Volume I known as red book. Appendix 5 and Appendix 6 are contained in Volume 1. Para 2 of Chapter I of the Imports and Exports Policy for April 1985 to March 1988 volume I reads as und