Export prohibition power under the Imports and Exports (Control) Act cannot support a blanket country-based embargo.

Section 3 of the Imports and Exports (Control) Act, 1947 authorises prohibition, restriction or control only in respect of goods of specified description, so a blanket export embargo framed only by destination exceeded the statutory power. The deeming provision in section 3(2) was held to operate only for customs consequences under section 11 of the Customs Act, 1962 and could not enlarge the substantive scope of the prohibition power under section 3(1). On that strict construction, a show cause notice founded on a general prohibition against exports to Rhodesia was without jurisdiction and was quashed.

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Issues: Whether a show cause notice founded on a general prohibition against exports to Rhodesia was without jurisdiction because Section 3 of the Imports and Exports (Control) Act, 1947 authorises prohibition only in respect of goods of specified description and does not extend to indirect exports or a blanket country-based embargo.

Analysis: Section 3 empowers the Central Government to prohibit, restrict or control imports and exports of goods of specified description in all cases or specified classes of cases. The deeming provision in sub-section (2) brings prohibited goods within Section 11 of the Customs Act, 1962, but does not import the purposes or scope of Section 11(2) into an order made under Section 3(1). The expression used in Section 3 was construed strictly, and "goods of specified description" was held to refer to the goods themselves and not merely to goods identified by destination. On that construction, a notification prohibiting export of all goods to a particular country exceeded the authority conferred by the section.

Conclusion: The notice was without jurisdiction and could not be sustained.

Final Conclusion: The impugned notice was quashed and the respondents were restrained from proceeding further on its basis.

Ratio Decidendi: A prohibition under Section 3 of the Imports and Exports (Control) Act, 1947 must relate to goods of specified description and cannot be stretched to a general embargo on exports merely by destination, nor can the deeming provision in relation to customs consequences enlarge the substantive power of prohibition.

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