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2022 Supreme(Del) 2132

IN THE HIGH COURT OF DELHI
Gaurang Kanth, J.
Sugandhi Snuff King Pvt. Ltd. - Appellant
Versus
Commissioner (Food Safety) Government of NCT of Delhi - Respondent
W.P.(C) 3362 of 2015 and C.M. Nos. 6020 of 2015, 9243 of 2015, 17726 of 2015, 16999 of 2017, 17859-860 of 2017, 19505 of 2018 & 7957 of 2021 (LEAD MATTER) and W.P.(C) 10368 of 2021 and C.M. No. 31897 of 2021 etc.
Decided On : 27-09-2022

Headnote:(A) Food Safety and Standards Act, 2006 - Sections 30(2)(a) and 89 - Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce) Act, 2003 - Chewing tobacco prohibited as 'food' in impugned Notifications issued by Commissioner of Food Safety challenged as ultra vires and arbitrary - COTPA is a comprehensive legislation governing tobacco and tobacco products, while FSSA is a general regulatory enactment - Power to prohibit trade not vested with the Commissioner under FSSA; actions lacking procedural fairness and compliance with Section 30(2)(a) and Section 18 -

Result: Impugned Notifications quashed. (Paras 1, 240)

Facts of the case:
Petitioners challenged Notifications prohibiting manufacture, distribution, and sale of chewing tobacco citing arbitrary exercise of power under FSSA, contending it is not 'food' but a scheduled product under COTPA.

Findings of Court:
COTPA occupies the field of tobacco regulation, and FSSA cannot imply repeal it; tobacco cannot be construed as food under FSSA.

Issues: Whether the impugned Notifications prohibiting tobacco constitute a valid exercise of power under FSSA; whether tobacco products can be classified as food under the FSSA.

Ratio Decidendi: The court emphasized legislative intent, finding that the COTPA was never intended to be superseded by FSSA, and the definitions under both do not align; prohibitions issued were outside the scope of permissible authority.

Result: Impugned Notifications quashed and set aside.

JUDGMENT

Gaurang Kanth, J. The present writ petitions under Article 226 of the Constitution of India raise a common question of law, arising in similar circumstances; hence, they are dealt with and disposed of by a common judgment.

2. The present batch of petitions challenge the legality and validity and seek quashing of the Notification bearing No. F.1(3)DO-I/2012/10503-10521 dated 25.03.2015 and subsequent Notifications dated 13.04.2016, 13.04.2017, 13.04.2018, 13.04.2019, 15.07.2020 and 06.08.2021 ("impugned Notifications") issued by the Commissioner of Food Safety, Government of National Capital Territory of Delhi ("NCT of Delhi") in view of Regulation 2.3.4 of the Food Safety and Standards (Prohibition and Restriction on Sales) Regulations, 2011 ("Regulation 2.3.4") in purported exercise of power under Section 30(2)(a) of Food Safety and Standards Act, 2006 ("FSSA") on the grounds of being arbitrary and ultra vires the FSSA and violative of the fundamental and other legal rights of the Petitioners.

3. The Impugned Notifications sought to prohibit the manufacture, storage, distribution or sale of Gutka, Pan Masala, flavoured/scented tobacco, Kharra and similar products in the interest of public health for a period of one year throughout the NCT of Delhi.

4. The Petitioners claim to be inter alia engaged in the business of lawful manufacture, trade, distribution and sale of scheduled tobacco products, more particularly chewing tobacco, both flavoured and scented for several decades. The Petitioners have obtained all requisite licenses and permissions under the relevant Statutes and Regulations from the concerned Statutory Authorities. Petitioners are duly registered under the Central Sales Tax Act and VAT, Central Excise etc.

5. In order to understand the ambit and meaning of both the legislations, i.e. Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 ("COTPA") and FSSA, it is significant to examine the said enactments in detail.

LEGISLATIVE HISTORY

6. One of the main issues in the present writ petitions is the legality of imposition of such ban by issuance of a Notification or an order by an administrative body. However, to clearly understand the subject matter, the history of the enactments/legislations involved needs to be expounded.

7. In 1975, the Union made the first attempt to bring tobacco industry under its control through the Tobacco Board Act. Thereafter, the Cigarettes (Regulations of Production, Supply and Distribution) Act, 1975 ("Cigarettes Act") was enacted with the aim and objective to levy certain restrictions in relation to trade and commerce in, and production, supply and distribution of, cigarettes and tobacco products.

8. In a paradigm shift through Notification bearing No. G.S.R. 852(E) dated 13.06.1986, labelling rule was inserted as Clause (zzz) to Rule 42 in the Prevention of Food Adulteration Rules, 1955. The said clause made it compulsory for every package of chewing tobacco to bear a warning. However, the same was omitted by Notification No. G.S.R. 431(E) dated 19.06.2009.

9. The Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Bill, 2001 was tabled in the Parliament with the intention to enact a comprehensive law on tobacco in public interest and in order to protect public health. The COTPA was enacted to give effect to the principles enshrined in Article 47 of the Constitution of India that the "State shall endeavour to bring about prohibition of the consumption, except for medicinal purpose of intoxicating drinks and of drugs which are injurious to health". Accordingly, COTPA repealed the Cigarettes Act. It received the assent of the President on 18.05.2003 and was published in the Gazette of India on 19.05.2003.

10. The origin of Statement of Objects and Reasons of the COTPA is from the Res

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