2008 (4) TMI 228 - HC - Customs

According to the petitioner, the action of the department of issue of Notification no.85/200-09 amounts to infringing the fundamental rights of the petitioner of carrying business and trade impugned notification prohibiting export of refined oil has been issue to check increase in prices of oil in India no ground to quash notification petitioner cannot be given benefit of Not. No. 42/08 dated 1.4.08 because B/E were filed on 14.3.08 i.e. before coming into existence of notification

Issues Involved:
1. Validity of Notifications dated 17.3.2008 and 1.4.2008.
2. Petitioner's entitlement to exemption from payment of customs duty.
3. Alleged infringement of the petitioner's fundamental rights under Article 19(1)(g).
4. Application of the principle of promissory estoppel.
5. Non-availability of material facts.

Detailed Analysis:

1. Validity of Notifications dated 17.3.2008 and 1.4.2008:
The petitioner challenged the notifications issued by the Central Government, specifically Notification No. 85 (RE-2007)/2004-09 dated 17.3.2008, which imposed a ban on the export of edible oil for one year, and Notification No. 42/2008-Customs dated 1.4.2008, which exempted crude and edible grade oil from customs duty. The court found that the government was competent to issue these notifications under the provisions of the Foreign Trade (Development & Regulation) Act, 1992, and the Customs Act, 1962. The notifications were issued to check the increase in oil prices in India, serving a legitimate public interest.

2. Petitioner's Entitlement to Exemption from Payment of Customs Duty:
The petitioner sought exemption from customs duty for importing crude oil under the advance authorization scheme. However, the court noted that the petitioner filled the bill of entry on 14.3.2008, before the issuance of Notification No. 42/2008-Customs dated 1.4.2008, which granted the exemption. Therefore, the petitioner could not benefit from a notification that was not in existence at the time of the bill of entry.

3. Alleged Infringement of the Petitioner's Fundamental Rights under Article 19(1)(g):
The petitioner argued that the notifications infringed upon their fundamental right to carry on business and trade under Article 19(1)(g) of the Constitution of India. The court rejected this contention, stating that the petitioner had not demonstrated how the notifications caused irreparable loss or injury. The court emphasized that the government's actions were within its legal authority and aimed at regulating foreign trade for public welfare.

4. Application of the Principle of Promissory Estoppel:
The petitioner claimed that they relied on a "No Due Certificate" from the Directorate of Vanaspati, Vegetable Oils & Fats, which allowed them to refine imported crude oil for re-export. The court held that the certificate was subject to compliance with central government regulations and did not constitute a definitive promise exempting the petitioner from customs duty. The principle of promissory estoppel could not be invoked against statutory provisions.

5. Non-availability of Material Facts:
The court noted several deficiencies in the petitioner's case. The petitioner failed to provide the alleged bill of entry, the assessment order of the customs duty, and the application for advance authorization. Additionally, the petitioner did not mention the date of entry inwards or the arrival of the goods, which is crucial for determining the applicable customs duty. The court concluded that the petitioner withheld material facts, undermining their claim and disqualifying them from invoking the court's extraordinary writ jurisdiction under Article 226/227 of the Constitution of India.

Conclusion:
The court dismissed the writ petition in limine, finding no merit in the petitioner's arguments and emphasizing the government's authority to issue the challenged notifications for regulating foreign trade and public welfare. The petitioner's failure to provide essential documents and facts further weakened their case.

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