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2026 Supreme(Mad) 2134

IN THE HIGH COURT OF JUDICATURE AT MADRAS
KRISHNAN RAMASAMY, J.
M/s Shahnaz Commodities International Pvt. Ltd. – Appellant
Versus
The Union of India, Rep. by its Secretary, New Delhi – Respondent
W.P. (MD) No. 35955 of 2025, W.M.P. (MD) Nos. 28565, 28567 of 2025
Decided  On : 11-03-2026

Advocates Appeared:
For the Appellants : Vijay Narayan, J. Ramesh
For the Respondents: A.R.L. Sundaresan, N. Dilipkumar

ORDER :

1. This writ petition has been filed to declare the subject Notification No.43/2025-26 dated 15.10.2025 in File No.01/89/180/43/AM-01/PC-2(A)/E-1256, being the Import Policy notified by the 2nd Respondent will not be applicable to the imports made under Notification of Customs No. 46/2011 dated 01.06.2011.

2. Petitioner's submission:

2.1 The learned Senior counsel appearing for the petitioner would submit that the petitioner is importing the Areca Nut, which would fall under the HSN Code 2008 1991. Now, by virtue of Notification No.43 dated 15.10.2025, the respondents had restricted the importation of roasted areca nut by fixing the Minimum Import Price (MIP) at the rate of Rs.351/- per kg. However, no proper survey was conducted before fixing the said MIP. According to the respondent, they have brought these restrictions in order to protect the interest of the Indian farmers and local market.

2.2 Further, he would contend that as per the Notification No.46/2011, the petitioner is eligible for importation of roasted areca nut at the rate of zero custom duty. However, now, though the custom duty is continuing at the rate of zero custom duty, the DGFT had fixed MIP at the rate of Rs.351/- by virtue of impugned Notification.

2.3 In this regard, he referred to the Framework Agreement on the Comprehensive Economic Co-operation between the Republic of India and Association of Southeast Asian Nations (ASEAN) signed on 13th August 2009, and would submit that the petitioner is eligible for import of areca nut without any basic custom duty as per Notification No. 46/2011.

2.4 In terms of Article 8 of ASEAN Agreement, India, being contractor party, shall not institute or maintain any non-tariff measures on the importation of goods from the other Parties, except in accordance with its WTO rights and obligations or other provisions in this Agreement. Therefore, the parties to the ASEAN Agreement are obligated to abide by the WTO agreements in this regard. Since the item is an agricultural product, the same is covered under the WTO Agreement on Agriculture, to which India is a party.

2.5 By referring Article 4 of the above agreement on agriculture, he would submit that a prominent WTO Agreement, members shall not maintain, resort to or revert to any measures of the kind which have been required to be converted into ordinary customs duties, except as otherwise provided for in Article 5 and Annex 5. The measures excluded under WTO Agreement are quantitative import restrictions, variable import levies, minimum import prices, discretionary import licensing, non-tariff measures maintained through State-trading enterprises, voluntary export restraints, and similar border measures other than ordinary customs duties.

2.6 Further, he would contend that MIP imposed by virtue of DGFT Notification No.43/2025-26 dated 15.10.2025, being a measure explicitly prohibited under WTO Agreement, cannot be applied to the goods imported under the ASEAN Agreement. In terms of Article 5 and Annex 5 of WTO Agreement on agriculture, only additional duty can be imposed and it is not meant for fixing of MIP for imported goods. Therefore, according to the petitioner, except as has been provided in Article 5, no non-tariff measures can be imposed by the parties to the framework agreement (IAFTA).

2.7 He would also submit that in similar situation, the MIP was fixed for “peas” and subsequently, the DGFT had excluded the application of this restriction to the imports involving bilateral or regional agreement or memorandum of understanding. However, the DGFT had not extent the said exclusion in the impugned notification No.43/2025-26 dated 15.10.2025.

2.8 Further, he would submit that in this case, while issuing the impugned notice, no thorough research has been conducted with regard to the interest of farmers, which is going to be affected by virtue of fixing MIP for import of roasted areca nuts.

2.9 Therefore, he would submit that as stated above, as far as the present notif

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