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TMI Blog2020 (3) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... he said rules applies to the imports. As the ilmenite is freely importable, the first respondent has no authority to interfere with the imports nor exercise the powers of Central Government and thus, exceeded its jurisdiction. As the prima facie case is made out by the petitioner, which is supported by Bill of Lading, Bill of Entry, customs assessments and consequential payment of custom duty, the petitioner is the owner of the minerals and it is entitled to use it in its factory. There is no prejudice caused to the respondents in allowing the writ petition forbearing the 1st respondent from interfering with the import of the ilmenite by the petitioner from other countries in any manner including discharge, transportation, storage and usage thereof. Petition dismissed. - W.P(MD)Nos.24396 and 22615 of 2019 And WMP(MD)Nos.21021, 19371, 20457, 21286 of 2019 & 535 of 2020 - - - Dated:- 27-2-2020 - Mrs. Justice Pushpa Sathyanarayana For the Petitioner : Mr.Lakshmi Narasimhan for M/s.Kingsly Soloman For the R1 R2 : M/s.Narmadha Sampath Additional Advocate General assisted by Mrs.J.Padmavathi Devi Special Government Pleader For the R3 to R6 : Mr.V.Kathirvelu Add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of which, the petitioner was kept in dark, and the Customs House Agent was also not even put on notice. Though the petitioner has been importing ilmenite from 2017, for the first time, there has been such objection for import. The first respondent had taken a stand that the Rules framed by the State of Tamil Nadu by exercising its power under the MMDR Act will be applicable to imports also. Though only the export of beach sand minerals is restricted by the Director General of Foreign Trade (DGFT), for the import of ilmenite which is major mineral, there is no restriction. The respondents 3 to 6 have never so far issued any notification to control the import of a substance, which is classified as an atomic mineral. The respondents had applied the MMDR Act and Rules for the import made by the petitioner. 5.As mentioned earlier, berthing was refused to the petitioner/Customs House Agent on 22.10.2019, which prompted the Customs House Agent to file WP(MD)No.22615 of 2019 on 23.10.2019 and an order of interim stay was passed against the order of traffic manager. Based on which, the V.O.C.Port Trust was permitted to discharge. Even thereafter, the first respondent had directed that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is possibility of getting mixed up with the frozen stocks, the import should not be permitted. 8(a).It is the specific plea of the writ petitioner that the first respondent has no jurisdiction over the imports. (b)The MMDR Act applies only for mining or prospecting within India and the Rules framed under Sections 15 and 23C of the MMDR Act cannot be given extra territorial application. Further, they do not apply to minerals freely importable under the Foreign Trade Policy. 9.The control and check imposed on the mining operation within India cannot be made applicable to the mineral, that are imported. As the petitioner is only importing the minerals which is mined outside the Country, the mining lease is unnecessary. Though the petitioner is carrying on with the said business, there were no allegations earlier with respect to mixing of minerals of those mined in India. 10.The Tamil Nadu Prevention of Illegal Mining, Transportation and Storage of Minerals and Mineral Dealers Rules, 2011, was published in exercise of the powers conferred under Section 23C(1) of the MMDR Act. Section 23C(1) provides power to State Government to make Rules for preventing illegal mining ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ughout the territory of India . Under Article 302, Parliament may impose restrictions on the freedom of trade, commerce or intercourse between one State and another as may be required in the public interest. The expression public interest may include a regional interest as well. However, Article 302 is qualified by Article 303 which prohibits Parliament and the State Legislatures from making any law that gives preference to one State over another or discriminates between one State and another. Situations of scarcity are to be dealt with by Parliament under Article 302(2). The power of State Legislature to impose reasonable restrictions on the freedom of trade, commerce or intercourse, as may be required in the public interest, requires such a Bill or amendment to be moved in the State Legislature only after receiving previous sanction from the President. The President, being the head of the State and the guardian of the federation, must be satisfied that such a law is indeed required and, thus, acts as a check on the promotion of provincial interests over national interest. Going by the aforesaid scheme of this Chapter, it becomes apparent that when there are such restr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, the definition in other rules cannot be referred or relied upon, more so, when the Parent Act itself does not deal with imported sand. A plea was made on behalf of the appellants that Sections 4 and 4 (1A) have to be read disjointly. This Court is not agreeing with the said contention, as the provisions have to be read harmoniously with the object of the enactment. Section 4 deals with reconnaissance permit, prospecting or mining operations. Sub section 1A was introduced with effect from 18-12-1999. When a sub section is introduced under a particular section, it has to be read in conjunction with the object of the section. Section 4 states that no operations shall be permitted in any area except under and in accordance with the terms and conditions of permit or licence or lease granted under the Act. Therefore, the transportation and storage referred in the Sub-section 1A can only apply to the mined or quarried mineral under the reconnaissance permit or prospecting licence or mining lease. Further, as rightly held by the Learned Single Judge that Section 15 empowers the State to make rules for regulating the grant of quarrying lease and Section 23C deals with measures to preven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In this regard, it is pertinent to advert to paragraph - 28 of the counter affidavit filed by the first respondent/District Collector, Tuticorin : 28.With regard to the averments made in para 22 of the affidavit, it is submitted that as per sub-section 4(1A) of the Act, no person shall transport or store or cause to be transported or store any mineral otherwise than in accordance with the provisions of the Act and the Rules made thereunder. Apart from that as per sub rule(2) of Rule 3 of the Tamil Nadu Prevention of Illegal Mining, Transportation and Storage of Minerals and Mineral Dealers Rules, 2011, no person other than the mineral dealer shall store or cause to be stored any mineral at any place for the purpose of sale or consumption. As the petitioner had been engaged in the mineral trade from the year 2017 onwards, without registering themselves as a mineral dealer, the District Authorities, having jurisdiction over the area had inspected the plant site of the petitioner company and seized the unlawfully stored mineral under the powers vested with them under Section 21(4) of the Act, 1957 for contravening the provisions of Section 4(1A) of the Act and Rule 3 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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