2020 (9) TMI 82 - HC - Customs

Provisional clearance of the goods imported pending a consideration by the Supreme Court of the main issue with regard to the legality of the notification - Ext.P1 notification - import of restricted item - Canadian Green Peas - HELD THAT - The prayer for provisional release of the goods sought for by the petitioner cannot be granted. It cannot be ignored that what the petitioner has chosen to import is a commodity in respect of which the Central Government, through the Directorate General of Foreign Trade (DGFT), has issued Ext.P1 notification restricting imports with a view to safeguard the domestic industry. The minimum import price for the product imported is fixed as 200/- per kilo gram CIF and it is not in dispute that the price at which the petitioner imported the commodity is significantly lower than the minimum import price stipulated. The goods, if allowed to be provisionally cleared, would enter the domestic market, thereby frustrating the very objective of the notification issued by the Central Government. That apart, the challenge to the notification itself is pending consideration before the Supreme Court in a batch of transferred writ Petitions from various High Courts. In those writ petitions, the Supreme Court has interdicted the High Courts from deciding the issue with regard to the legality of the notification and has also indicated that, in the event of any importer seeking interim directions, they would have to approach the Supreme Court for the same. Petition dismissed.

Summary

Issues:
1. Validity of import of Canadian Green Peas under a restricted notification.
2. Request for provisional clearance of imported goods pending Supreme Court's consideration of the legality of the notification.

Analysis:
Issue 1: The petitioner holds a valid import export code for food grains and cereals, importing Canadian Green Peas under a restricted notification. The notification imposes strict conditions on ports and minimum import price. The Supreme Court has transferred similar writ petitions challenging the notification. The petitioner seeks provisional clearance of goods pending the Supreme Court's decision. The court notes the lower import price compared to the minimum stipulated, which would undermine the notification's objective of safeguarding the domestic industry. The court denies the provisional release, considering the pending challenge before the Supreme Court and the interdiction against High Courts from deciding on the notification's legality.

Issue 2: The court rejects the petitioner's request for exceptional treatment, citing the Supreme Court's interdiction on High Courts from considering the notification's legality. Despite the petitioner's reliance on a Supreme Court decision in a different case, the court finds it irrelevant to the current situation. The court dismisses the writ petition, emphasizing that the issue is under the Supreme Court's consideration in transferred writ petitions from various High Courts, and the petitioner cannot seek relief from the High Court in contravention of the notification.