2018 (10) TMI 1930 - HC - Customs

Stay on N/N. 04/2015-2020 dated 25.04.2018 and N/N. 05/2015- 2020 dated 25.04.2018 issued by the Director General of Foreign Trade Ministry of Commerce Industry Department of Commerce by the Madras High Court by passing interim order - violation of Section 3 of the Foreign Trade (Development and Regulations) Act 1992 - HELD THAT - This Court finds that in earlier round of litigation in connected matter i.e. S. B. Civil Writ Petition No.12042/2018 this Court had passed interim order dated 01.06.2018 and thereafter the same notification is made subject matter of challenge before the Madras High Court and interim order has been passed staying the operation of the impugned notification. This Court finds that prima-facie the orders which has been issued by the Director General of Foreign Trade Ministry of Commerce Industry Department of Commerce are not in consonance with the requirement of Section 3 of Foreign Trade(Development and Regulation) Act, 1992 and matter requires consideration. Counsel for the respondent-Mr. Anand Sharma may file reply to the writ petition within a period of two weeks. In the meanwhile the operation and effect of Notification No.04/2015-2010 dated 25.04.2018 Notification No.05/2015- 2020 dated 25.04.2018 Notification No.32/2015-2020 dated 30.08.2018 and Notification No.37/2015-2020 dated 28.09.2018 shall remain stayed. List on 30.10.2018.

Summary

Issues involved:
Violation of Section 3 of the Foreign Trade (Development and Regulations) Act, 1992 by the Director General of Foreign Trade, Ministry of Commerce & Industry; Unreasonable restriction on import of commodities like peas in the impugned notification; Prima facie examination of the orders issued by the Director General of Foreign Trade.

Analysis:
The petitioner's counsel argued that two notifications issued by the Director General of Foreign Trade had been stayed by the Madras High Court, highlighting a controversy regarding the exercise of power in violation of Section 3 of the Foreign Trade Act. The counsel contended that unreasonable restrictions were imposed on importing commodities like peas. On the other hand, the respondent's counsel requested time to verify the outcome of the interim order before the Madras High Court, which was due for consideration on the same day. The Court noted a previous interim order in a related case and observed that the impugned notifications were not in line with the requirements of the Foreign Trade Act, necessitating further examination.

The Court directed the respondent's counsel to file a reply to the writ petition within two weeks. In the interim, the operation and effect of several notifications were stayed. It was clarified that the respondent's counsel could apply for the vacation of the interim order if needed. The matter was listed for further hearing on a specific date.

This judgment primarily addressed the legality of notifications issued by the Director General of Foreign Trade and the imposition of restrictions on imports, emphasizing compliance with statutory provisions. The Court's decision to stay the notifications pending further review indicates a serious concern regarding the potential violation of the Foreign Trade Act.