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Importers succeed in challenging Notification No. 15, Director General's jurisdiction exceeded. The challenge to Notification No. 15 (RE-2008)/2004-2009 by importers of betel nuts was successful as the Director General of Foreign Trade was found to ...
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Importers succeed in challenging Notification No. 15, Director General's jurisdiction exceeded.
The challenge to Notification No. 15 (RE-2008)/2004-2009 by importers of betel nuts was successful as the Director General of Foreign Trade was found to have exceeded jurisdiction in issuing the notification. Citing statutory provisions and a previous judgment, the notification was deemed illegal and set aside. Consequently, the respondents were allowed to take action under the Customs Act, 1962 against the petitioners. Similar subsequent notifications were also invalidated in separate writ petitions, ensuring legal clarity and consequences for all parties involved.
Issues: Challenge to Notification No. 15 (RE-2008)/2004-2009 by importers of betel nuts; Jurisdiction of Director General of Foreign Trade to issue the notification; Legality and constitutionality of the notification; Validity of the notification under the Foreign Trade (Development and Regulation) Act, 1992.
Analysis:
1. Challenge to Notification: The writ petitions were filed by importers of betel nuts challenging Notification No. 15 (RE-2008)/2004-2009 issued by the Director General of Foreign Trade. The petitioners contended that the Director General had no jurisdiction to issue the notification, and therefore, it was illegal and unconstitutional.
2. Jurisdiction of Director General: The counter affidavit filed by respondents stated that the notification was issued to protect the interests of domestic cultivators and was in public interest. However, it was argued that the power to formulate export and import policy and amend it lies with the Central Government as per the Foreign Trade (Development and Regulation) Act, 1992. The Act specifies that only the Central Government can formulate export and import policy and amend it, and this power cannot be delegated to the Director General of Foreign Trade. As the notification was issued by the Director General, it was concluded that it was issued without jurisdiction.
3. Legal Precedent: Reference was made to a judgment of the Madras High Court where a similar notification was quashed on the grounds of lack of jurisdiction. In light of the statutory provisions and the Madras High Court judgment, the Notification dated 4-6-2008 was deemed illegal and set aside.
4. Consequences: With the setting aside of the notification, the respondents were permitted to proceed against the petitioners under the provisions of the Customs Act, 1962. The writ petitions were allowed, and the respondents were given the freedom to take necessary action under the Customs Act.
5. Additional Writ Petitions: Similar notifications issued on different dates were also challenged in separate writ petitions. These notifications suffered from the same invalidity as the earlier one, and therefore, those writ petitions were also allowed, setting aside the notifications.
6. Final Clarification: It was clarified that with the setting aside of the notifications, the respondents had the liberty to proceed against the petitioners under the Customs Act if deemed necessary, ensuring legal clarity and consequences following the judgment.
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