IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 25556 of 2022 FOR APPROVAL AND SIGNATURE:

HONOURABLE MR. JUSTICE N.V.ANJARIA and HONOURABLE MR. JUSTICE NIRAL R. MEHTA ==========================================================

1	Whether Reporters of Local Papers may be allowed to see the judgment ?	Yes
2	To be referred to the Reporter or not ?	Yes
3	Whether their Lordships wish to see the fair copy of the judgment ?	No
4	Whether this case involves a substantial question of law as to the interpretation of the Constitution of India or any order made thereunder ?	No

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KRIBHCO AGRI BUSINESS PVT. LTD.

Versus UNION OF INDIA ==========================================================

Appearance:

MR. M.R.BHATT, SR. ADV. WITH MR. MAYUR KISHANCHANDANI FOR M R BHATT & CO.(5953) for the Petitioner(s) No. 1,2 MUNJAAL M BHATT(8283) for the Petitioner(s) No. 1,2 MR. DEVANG VYAS, ASG WITH MR NIKUNT K RAVAL(5558) for the Respondent(s) No. 1,2 ==========================================================

CORAM:HONOURABLE MR. JUSTICE N.V.ANJARIA and HONOURABLE MR. JUSTICE NIRAL R. MEHTA Date : 02/03/2023

CAV JUDGMENT

(PER : HONOURABLE MR. JUSTICE N.V.ANJARIA)

Heard learned senior advocate Mr. M. R. Bhatt with learned advocate Mr. Mayur Kishanchandani for the petitioner and learned Additional Solicitor of General Mr. Devang Vyas assisted by learned advocate Mr. Nikunt Raval for the respondents, at length.

2. In this Special Civil Application filed under Article 226 of the Constitution, the petitioners have prayed to set aside notification dated 8.9.2022, whereby the respondent No.1 – Ministry of Commerce and Industry, Department of Commerce, Government of India prohibited the export of broken rice – HS CODE 1006 40 00, with effect from 9.9.2022. In the alternative, it is prayed to declare that notification dated 8.9.2022 would not apply to the broken rice procured by petitioner No.1 prior to the date of the notification. The petitioner seeks permission to export 3006.110 M.T. of broken rice.

2.1 It is further prayed to declare that the abrupt change in policy by issuing notification dated 8.9.2022 banning the export of broken rice, was arbitrary. The petitioner has called in question the action on part of the respondents in not permitting export of consignments of the commodity broken rice already procured by the petitioner before the date of imposition of the prohibition.

3. The petitioner No.1, a company registered under the provisions of the Companies Act,2013, is engaged in the business of export of different agricultural products. The petitioner No.1 is a wholly owned subsidiary of Krishak Bharti Cooperative Limited which is a multi-state co-operative society formed to cater to the needs of the farmers in the entire country. It was stated that Krishak Bharti Cooperative Limited (KRIBHCO) established the petitioner No.1 company to export agro commodities from India to different countries.

3.1 The commodity 100% broken rice under ITC HS CODE 1006 40 00, was a free commodity available for export, till the issuance of impugned notification. It is the case of the petitioner that it used to procure regularly the said commodity to export it out of India. The petitioner stated that presently also it was in process of procuring the said commodity in different quantities. It is the case of the petitioner that the said commodity 100% broken rice of the aforesaid description is not used in India for human consumption. It is also not part of the Public Distribution system, it was stated.

3.2 By virtue of notification dated 8.9.2022 issued by the Ministry of Commerce and Industry, the export policy of broken rice came to be amended by exercising powers under provisions of Foreign Trade (Development and Regulation) Act, 1992 read with the stipulations in the Foreign Trade Policy whereby the export of the broken rice of the aforesaid code came to be prohibited. The notification was b

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