The central legal point established in the judgment is the requirement for a license under the Ammonium Nitrate Rules and the implications of possession without a license under the Explosives Act, 1884.

1. This revision has been filed to set aside the order dated 16.03.2012 in CMP No.5722 of 2011 on the file of the Judicial Magistrate No. IV, Vellore, Vellore district and further order to return of 554 bags of Ammonium Nitrate to the petitioner.

2. The respondent police seized Ammonium Nitrate from the shop of the petitioner on 01.07.2011, that only on 21.12.2012, the Petroleum and Explosives Safety Organisation, Nagpur, through Chief Controller of Explosives has passed a notification declaring that with effect from 21.07.2011, the Ammonium Nitrate shall be deemed to be an explosive. The said notification reads as follows -

C.II(I) 77/VII/AN

Nagpur, dated 4th August, 2011

MEMO

Sub: Notification on Ammonium Nitrate No.S.O.1678(E) dated 21st July, 2011 – Clarification Reg.

Government of India has issued Notification No.S.O.1678(E) dated 21st July, 2011 declaring Ammonium Nitrate (AN) having the chemcial formula NH4NO3 or ay combination containing more than 45% of AN by weight including emulsions, suspensions, melts or gols (with or without inorganic nitrates) shall be deemed to be an explosive within the meaning of Explosives Act, 1884.

Copy of the said Notification is made available in the PESO's website under News Events for the information of all concerned. Copy of the Notification is enclosed for reference.

It is clarified that vide this Notification AN has been declared as an explosive within the meaning of Explosives Act, 1884. As per the foot note of the Notification, a separate set of Rules have to be framed. The exercises on framing separate set of Rules for regulation of AN is in progress. Till Ammonium Nitrate Rules are finally notified, the Ammonium Nitrate is not attracting the provisions of the said Rules or Explosives Rules, 2008.

The rules related to manufacture, conversion, stevedoring & bagging, import, export, transport, possession for sale or use of Ammonium Nitrate Rules and receiving the suggestions/objection from the public and finally the Ammonium Nitrate Rules are published in the Government of India Gazette.

3. Thereafter, on 21.12.2012, the above said authority issued circulars to (1) All Explosives Manufacturers, (2) Ammonium Nitrate Manufacturers & Stevedores and (3) All Stakeholders, which reads as follows -

C.II(1)77-VII Nagpur, dated 21.12.2012 To,

1. All Explosives Manufacturers

2. Ammonium Nitrate Manufacturers & Stevedores

3. All Stakeholders Sub: Compliance of Ammonium Nitrate Rules – regarding.

Dear Sir(s)

The Ammonium Nitrate Rules have been notified by Government of India vide GSR 553 (E) dated 11th July, 2012.

As per the said rules "No person shall undertake manufacture, conversion, stevedoring, import, export, transport or possess for sale or use Ammonium Nitrate except as authorised or licensed under these rules". All the existing manufacturers, converters, users, transporters, stevedores, sellers, possessors, importers and exporters shall apply for licence within six months and shall comply with the provisions of these rules within a period of one year from the date of publication of these rules.

On persual of this office record, it is observed that very few applications have been received by various officers of PESO for approval/grant of licence under Ammonium Nitrate Rules, 2012. This is being viewed with concern.

All persons undertaking manufacture, conversion, stevedoring, import, export, transport or possess for sale or use Ammonium Nitrate are advised to initiate necessary action for compliance of Ammonium Nitrate Rules. Non-compliance of Ammonium Nitrate Rules will attract strict action under the Explosives Act, 1884 and Ammonium Nitrate Rules, 2012.

Action taken report may be submitte to this office.

4. Hence, the learned counsel for the petitioner would submit that in as much as on 01.07.2011, there was no Government Order nor any notification from the Government declaring Ammonium Nitrate as an explosive substance for all practical purpose and that the ab