2018 (10) TMI 1424 - HC - Customs

Import of yellow peas - restricted item or not? - Trade Notice No.12/2018 - Interim relief availed - Held that - In the present case, however in almost all cases under interim orders of the Court, imports have been allowed and cleared except in the first petition where out of total quantity of 25,000 MT of peas for which the order was placed, all but 177 MT of peas arrived and got cleared, which would neither be possible nor feasible. Under the interim orders, the petitioners thus got final relief, which obviously cannot be taken back now. There is nothing on record to suggest that between the date of registration of the import and before the registration was cancelled, the goods were already put in transit. Petition disposed off.

Summary

Issues:
1. Interpretation of import policy changes affecting yellow peas imports.
2. Validity of clarificatory Trade Notices issued by the Government.
3. Impact of advance payments on import eligibility.
4. Justification for import restrictions to protect local farmers.

Issue 1: Interpretation of import policy changes affecting yellow peas imports:
The case involved multiple petitions by importers challenging the refusal of authorities to clear yellow peas imports following changes in import policies. The Government amended the policy, restricting yellow peas imports from being free to "restricted" for a specific period. The restriction allowed imports based on the total quantity allowed during the period, excluding already imported quantities.

Issue 2: Validity of clarificatory Trade Notices issued by the Government:
The Government issued Trade Notices clarifying the conditions for import eligibility, specifying that only 100% advance payments made before a certain date would qualify for registration. Importers contested the validity of these notices, claiming they were without jurisdiction and contrary to the main notification. However, the Court held that the Trade Notices were clarificatory and did not alter the original notification.

Issue 3: Impact of advance payments on import eligibility:
Importers argued that their orders, backed by advance payments through banking channels, should be considered "already imported" as per the original notification. The Court analyzed the definition of "already imported" and concluded that only 100% advance payments qualified for this category, as clarified in the Trade Notices.

Issue 4: Justification for import restrictions to protect local farmers:
The Government justified the import restrictions on yellow peas to protect the interests of local farmers, as imported goods were cheaper despite higher import duties. The restrictions aimed to safeguard the local farming sector. To alleviate importers' challenges, the Government later allowed imports against advance payments proportional to the payment made before a specified date.

In the final judgment, the Court disposed of all petitions, upholding the interim relief granted to most importers. However, for the remaining small quantity of imports, the Court did not accept the petitioner's plea. The judgment highlighted the importance of adhering to the revised import policies and clarified the eligibility criteria for imports based on advance payments.