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1992 Supreme(Online)(Bom) 15

BOMBAY HIGH COURT
*Sujata Manohar, Srikrishna, JJ.
S. R. I. Roller Mills Pvt. Ltd. v. Union of India and Others
Writ Petitions Nos. 1810 of 1990 | 30 of 1990 | 1483 of 1991



Advocates:
For the Appellants/Petitioners: Dr. D. V. Chandrachud, Mr. S. A. Divan
For the Respondents:Advocate General

The power to regulate imports does not inherently include the authority to levy inspection fees without explicit legislative authorization.

Headnote:(A) Plants, Fruits and Seeds (Regulation of Import into India) Order, 1989 - Destructive Insects and Pests Act, 1914 - The levy of inspection fees for importing timber logs and pulses is challenged as ultra vires to the powers conferred upon the Central Government. The court held that the definition of 'plant' includes timber logs but pulses fall under 'seeds'. The central government lacks the authority to impose fees under S. 3(1) of the Act, which does not mandate fees' collection. The principle that regulation powers do not equate to taxation is reiterated, referencing established precedents that require explicit legislative authority for tax levies. The orders imposing such fees were set aside. (Paras 1 to 20)

Table of Content
1. challenge to inspection fees for imported plants and seeds. (Para 1 , 2 , 3)
2. definition debate on whether pulses count as seeds. (Para 4 , 5 , 6)
3. authority for levy inspection fees under regulatory power questioned. (Para 7 , 8)
4. lack of legislative authority to impose fees noted. (Para 9 , 12 , 13 , 14)
5. past arguments and precedents impacting current regulatory framework examined. (Para 16 , 18 , 20)

1. These writ petitions challenge the levy of inspection fees in respect of inspection inter alia, of plants and seeds imported into India. These fees are levied under clauses 3(12) and 12 of the Plants, Fruits and Seeds (Regulation of Import into India) O.1989, issued in exercise of the powers conferred on the Central Government By S.3(1) of the Destructive Insects and Pests Act, 1914 . The levy of these inspection and supervision charges under the said order has been challenged in a large number of writ petitions which are before us today. It is an accepted position that the three petitions being decided by us cover all the point at issue in the pending writ petitions. We have allowed advocates appearing in these other writ petitions also to address us on the various common questions of law which arise in these writ petitions. Accordingly we have had the benefit of listen - ing to the able arguments of Dr. D. V. Chandrachud and Mr. S. A. Divan along with the learned advocates appearing in these, three writ petitions.

2. An affidavit in reply has been filed by the Union of India in Writ Petition No. 1810 of 1990. Learned Advocate General appearing for the Union of India in all these matters, has stated that the affidavit in reply filed in Writ Petition No. 1810 of 1991 should be treated as a common affidavit in reply in all the writ petitions which are before us challenging these inspection and supervisory fees. None of the petitioners have any objection to this. We have, therefore, acceded to this request.

3. The petitioners in Writ Petitions Nos. 1810 of 1990 and 30 of 1990 have imported timber logs whole, the petitioner in writ Petition No. 1483 of 1991 has imported pulses. The first contention which is raised before us by the petitioners is that timber logs and pulses do not come within the definition of "Plant" or "seeds" under clauses 2(1) and 2(1) respectively, of the plants, Fruits and Seeds (Regulation of Import into India) Order, 1989 (hereinafter referred to as the "said Order"). In respect of timber logs, the Supreme Court, in the case of Sarda Plywood Ltd. v. Union of India , reported in 1991 (33) ECC 29 (SC), has held that timber logs fall within the definition of the term 'Plant' under Cl. 2(1) of the said Order. The petitioners an Writ Petitions 1810 of 1990 and 30 of 1990 therefore, did not press their contention that timber logs do not fall within the definition of the term 'plants' under the said Order.

4. It is however, urged by Mr. Bansal, learned advocate for the petitioners in Writ Petition No. 1483 of 1991, that pulses which have been imported by the petitioners in that petition do not fall within the definition of the term "seeds" under the said Order. Hence the said Order cannot apply to the import of pulses. According to Mr. Bansal, pulses are equivalent to grains which are not seeds. He has also submitted that the original Act, namely, the Destructive Insects and Pests Act, 1914 applies only to crops. Pulses are not a crop, Hence the order cannot cover pulses. To take the second submission first, it is not correct to say that the applies only to crops. S. 3 of the said Act gives power to the Central Government "to prohibit or regulate..... the import into India........ of any article or class of articles likely to cause infection to any crop or of insects generally or any class of insects". The import therefore, of any article likely to infect crops can be either banned or regulated. The actual article imported need not be a "crop". If pluses which are imported into India

































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