2015 (9) TMI 88 - HC - Customs

Goods at duty free shops are imported into India Appellants consignment was not cleared by Custom Authorities for reason that consignment being of food products, required NOC from FSSAI Though goods were later cleared, appellant filed petition before Single Judge seeking clarification that goods subject matter of consignment being meant for sale in Duty Free shops, cannot be treated as imported into India and that said goods do not enter country as same are sold at Duty Free shops, which was disposed of Held that - Appellant contended that inspite of consignment owing to non-clearance of which writ petition was filed being cleared, to decide question of law, so that if contention of appellant is right, it does not face such situations in future Admittedly work of appellant is recurring in nature Cause of action for filing of petition from which this appeal arises was not stray one It is common knowledge that some time is taken in engaging advocates, preparing and filing the petition, listing thereof in Court and in hearing of petition even qua interim relief claimed and during all of which time goods would not be released Settled position in law that opposite party to litigation cannot defeat lis validly brought before Court by contending that cause of action had disappeared Appeal allowed Order of Single Judge disposing of petition set aside Writ Petition restored - Decided in favour of Appellant.

Summary

Issues:
- Appeal against order disposing of writ petition as infructuous
- Interpretation of duty-free shop operations and import regulations
- Request for declaration on applicability of Food Safety and Standards Act
- Consideration of recurring nature of issues in duty-free shop operations
- Legal principle on not dismissing petitions as infructuous when important questions of law are involved

Analysis:
1. The appeal challenged the order disposing of the writ petition as infructuous, leaving the question of law open. The appellant, operating duty-free shops, faced a situation where a consignment of food products was not cleared by Customs due to the requirement of a No Objection Certificate (NOC) from the Food Safety and Standards Authority of India (FSSAI). The appellant sought a declaration that duty-free shop goods do not amount to importing goods into India and requested relief from FSSAI regulations for such consignments.

2. The court acknowledged the recurring nature of issues faced by the appellant in duty-free shop operations. Despite the specific consignment in question being cleared, the court noted that the relief sought in the writ petition was not limited to that consignment alone. The appellant's concern about potential future delays and wastage of goods due to similar issues warranted a decision on the legal questions raised in the petition.

3. Citing legal precedents, the court emphasized that petitions involving important questions of law should not be dismissed as infructuous, even if the immediate issue has been resolved. The court referred to cases where the validity of licenses and orders were considered beyond their immediate expiry, highlighting the importance of addressing fundamental rights and legal principles despite temporal changes in circumstances.

4. The court also noted that an opposite party in litigation cannot evade valid legal challenges by arguing that the cause of action has disappeared, only to create a fresh cause of action later. Legal principles from various judgments underscored the need to address substantive legal issues raised in petitions, even if the immediate situation has evolved.

5. In conclusion, the court allowed the appeal, setting aside the order disposing of the writ petition as infructuous. The writ petition was restored for further consideration on the legal questions raised. The parties were directed to appear before the Single Judge for proceedings, emphasizing the importance of addressing significant legal issues raised in the petition.