SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Telangana) 233

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
N.V. SHRAVAN KUMAR, J.
M/s. Rain CII Carbon (Vizag) Limited and Another - Petitioners 
Versus
Office of the Additional Director General of Foreign Trade, Hyderabad and others – Respondents
Writ Petition No.7538 of 2025
Decided On : 02-05-2025

Advocates Appeared:
For the Petitioners: Mr. Sai Sanjay Suraneni
For the Respondents: Gadi Praveen Kumar, Deputy Solicitor General of India.

The court affirmed entitlement to advance authorisation under the Foreign Trade Policy for deemed exports to SEZ units, emphasizing the need for administrative decisions to align with established judicial rulings.

Headnote:(A) Constitution of India - Articles 14, 19, and 300 - Foreign Trade (Development and Regulation Act), 1992 - Advance Authorisation scheme - Petitioners challenged the rejection letters from the Regional Authority which cited legal grounds for denying authorisation to import raw petroleum coke necessary for manufacturing calcined petroleum coke, crucial for supplying to SEZ units - The court addressed the legality of the rejection in the context of previous Supreme Court orders specifically allowing deemed exports to SEZs. (Paras 1, 72)

(B) Legal Principles - The petitioners are entitled to advance authorisation under the Foreign Trade Policy when goods supplied meet stipulated conditions for deemed exports to SEZ units as defined in earlier court rulings. The Court upheld the interpretation allowing such transactions as consistent with policy objectives and trade rights. (Paras 4, 71)

(C)

Findings of Court:
The rejection letters issued lacked sufficient reasoning and did not comply with the need for reconciliation with Supreme Court directives regarding import authorisation for SEZ supply. (Para 74) Findings emphasized that previous permissions and established rights must be upheld unless justifiable reasons counter them. (Paragraphs 74-75).

(D)

Issues: The principal issues addressed included the interpretation of 'deemed exports' in relation to SEZ units, the authority's jurisdiction in rejecting the applications, and the justification for the invoked policy constraints. (Paras 1, 72) (E)

Ratio Decidendi: The court ruled that previous authorisations set a precedent, and the lapse in rationale from the Regional Authority necessitated a re-evaluation. Rights under export law cannot be disregarded without substantial justification. (Paras 72-76) (F)

Result: The court quashed the rejection letters and mandated the respondents to reconsider the petitioners' applications for advance authorisation, allowing CPC supply to SEZ units. (Para 75) (G) Parties: Petitioners - M/s. Rain CII Carbon (Vizag) Limited; Respondents - Office of the Additional Director General of Foreign Trade, Hyderabad and others.

Table of Content
1. factual background of the petitioners' identity and operations. (Para 2 , 3 , 5 , 6)
2. details of the application processes for advance authorizations. (Para 7 , 8 , 9)
3. response from petitioners to deficiency letter. (Para 10 , 11)
4. writ petition filed against rejection order. (Para 12)
5. legal contestation against authority's jurisdiction. (Para 13)
6. respondents' counter about availability of alternative remedies. (Para 14 , 15 , 16 , 17 , 18)
7. argument regarding nature of deemed exports. (Para 19 , 20 , 21)
8. clarification of definitions related to deemed exports. (Para 22 , 23 , 24 , 25)
9. observations regarding nature of rejection. (Para 26 , 27 , 28)
10. unpacking the implications of policy interpretation. (Para 29 , 30 , 31 , 32 , 33)
11. clarification of the procedural context regarding authorizations. (Para 34 , 35 , 36 , 37 , 38)
12. further assertions regarding the petitioners' legal standing. (Para 39 , 40 , 41 , 42)
13. discussion on previous authorizations granted. (Para 43 , 44 , 45 , 46)
14. commercial implications of the decisions. (Para 47 , 48 , 49 , 50 , 51)
15. argument regarding the nature of losses incurred. (Para 52 , 53 , 54)
16. court's analysis of implications from the supreme court's orders. (Para 55 , 56 , 57 , 58)
17. court's commentary on the decisions made by dgft. (Para 59 , 60 , 61 , 62 , 63)
18. recommendations for policy compliance and further consideration. (Para 64 , 65 , 66 , 67)
19. finality of review process and implications of prior authorizations. (Para 68 , 69)
20. final judgment and directions for remittance to authorities. (Para 70 , 71 , 72 , 73 , 74)
21. conclusion and order of dismissal without costs. (Para 75 , 76 , 77)

ORDER :

(N.V. SHRAVAN KUMAR, J.)

This writ petition is filed with the following prayer :

“(i) Declaring the action of Respondent No.1/Regional Authority, Additional Director General of Foreign Trade, Hyderabad in issuing the Rejection Letter dated 05.02.2025 bearing File No. 09AX04000927AM25 and Deficiency Letter dated 15.01.2025 bearing File No. 09AX04000927AM25 as being arbitrary, illegal besides being violative of the Petitioners' rights under Articles 14, 19 and 300 of the Constitution of India, the Foreign Trade (Development and Regulation Act), 1992, Foreign Trade Policy, 2023, DGFT Notification 68/2023 dated 07.03.2024, CAQM Order dated 15.02.2024 and the Hon'ble Supreme Court's order dated 10.10.2023 in W.P. (C) No.13029/1985, M.C. Mehta v. Union of India, and consequently quash the Rejection Letter dated 05.02.2025 bearing File No.09AX04000927AM25 and Deficiency Letter dated 15.01.2025 bearing File No. 09AX04000927AM25; and

(ii) Declare that raw pet coke (RPC) imports by the Petitioners for supply of calcined pet coke (CPC) to SEZ units in India are entitled to the grant of Advance Authorisation under the Foreign Trade Policy, 2023; and

(iii) Direct the Respondents to grant Advance Authorisation to the Petitioners against their Application for Grant of Advance Authorisation dated 31.12.2024 bearing File No. 09AX04000927AM25; and

(iv) Direct the Respondents to permit the Petitioners to supply CPC to SEZ units in India in terms of the order dated 15.02.2024 issued by the Commission for Air Quality Management in National Capital Region and Adjoining Areas read with the Hon'ble Supreme Court's order dated 10.10.2023 in W.P. (C) No.13029/1985, M.C. Mehta v. Union of India; and

(v) In the alternative and without prejudice to the above prayers, declare the actions of the Respondents in issuing the DGFT Notification No.68/2023 dated 07.03.2024, if and insofar as it purports to prohibit the supply of CPC by domestic calciners to SEZ units as being illegal arbitrary, illegal besides being violative of the Petitioners' rights under Articles 14 & 19 of the Constitution of India; and consequently quash the DGFT Notification No.68/2023 dated 07.03.2024, if and insofar as it purports to prohibit the supply of CPC by domestic calciners to SEZ units; and

(vi) Pass su

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top