2019 (7) TMI 1645 - HC - Customs

Request for registration of their contract with TMO rejected - import of poppy seeds - request was rejected on the ground of country cap - HELD THAT - Prima facie, this Court concurs with the contention that if the registration of TMO itself is exhausted on the basis of the country cap, then the guidelines would work on a first come first serve basis, which is not the methodology under the said guidelines. Issue notice. The learned counsel appearing for the respondents accepts notice and seeks time to take instructions. List on 29.07.2019.

Summary

Issues:
Challenge to notification on import guidelines for poppy seeds.

Analysis:
The petitioners challenged a notification dated 25.06.2019, which outlined guidelines for importing poppy seeds. According to the guidelines, importers needed to register the import contract with the Turkish Grain Board (TMO) and then apply for registration with the Narcotics Commissioner, with a maximum import quantity set at 450 MT. The petitioners' main grievance was the lack of opportunity to register their contracts. They were informed that the country cap had been reached, leading to the rejection of their import registration request by TMO. The Court agreed that if imports are to be distributed equitably in India, the petitioners' registration request should not be rejected solely based on the country cap. The Court noted that if TMO's registration is exhausted due to the country cap, the guidelines should operate on a first-come, first-serve basis, which was not the intended methodology under the guidelines.

The Court issued notice on the matter, with the respondents' counsel accepting the notice and requesting time to seek instructions. The case was listed for further hearing on 29.07.2019.