Court invalidates DGFT notification, upholds Ministry of Finance tariff values. Limited judicial review emphasized.

The court invalidated the notification dated 13th May 2013 issued by the DGFT due to lack of authority and procedural irregularities, quashing it. However, the court upheld the notification dated 25th June 2013 issued by the Ministry of Finance regarding tariff values. The court emphasized limited judicial review of show cause notices and allowed the writ petitions challenging the notifications and show cause notice to continue, ultimately disposing of the case by quashing one notification and upholding the other.

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Issues Involved:
1. Legality of the notification dated 13th May 2013 issued by the Director General of Foreign Trade (DGFT).
2. Legality of the notification dated 25th June 2013 issued by the Ministry of Finance (Central Board of Excise and Customs).
3. Validity of the show cause notice issued by the Commissioner of Customs (Preventive), West Bengal, Kolkata.

Issue-wise Detailed Analysis:

1. Notification dated 13th May 2013:
The notification issued by the DGFT fixed the Cost Insurance & Freight (CIF) Value at Rs. 110/- per kg and above as a condition for importing areca nuts. The petitioners argued that the DGFT lacked the authority to amend the Foreign Trade Policy under Section 5 of the FTDR Act, as this power is vested solely in the Central Government. They contended that the DGFT could only advise the Central Government and not amend the policy. The court noted that the DGFT issued the notification under the powers conferred by Section 5 of the FTDR Act, read with Paragraph 2.1 of the Foreign Trade Policy, 2009-2014. However, the court found that the DGFT, acting as a delegatee, could not exercise powers under Section 5 due to the prohibition under Section 6(3) of the FTDR Act. The court also highlighted that the notification was issued in the name of the DGFT and not the Central Government, violating the procedural requirements under Article 77 of the Constitution. The court concluded that the notification was invalid as it was not issued by the appropriate authority and quashed it.

2. Notification dated 25th June 2013:
This notification, issued by the Ministry of Finance, fixed the tariff value of areca nuts at US $1613 per metric ton. The court examined the validity of the notification under Section 14(2) of the Customs Act, 1962, which allows the Board to fix tariff values for imported goods based on the trend of values of such or like goods. The court found that the Board had the authority to fix tariff values notwithstanding the transaction value under Section 14(1). The court rejected the petitioners' argument that the notification lacked a valid basis, noting that the Board's satisfaction regarding the trend of values was sufficient. The court upheld the notification, finding no grounds to invalidate it.

3. Show Cause Notice:
The show cause notice issued by the Commissioner of Customs (Preventive), West Bengal, Kolkata, contemplated confiscating the imported areca nuts for violating the policy condition of the CIF Value and imposing a penalty under Section 112 of the Customs Act, 1962. The court emphasized that judicial review of show cause notices is limited and should only be exercised if the notice is without jurisdiction or issued by an incompetent authority. The court found that the show cause notice was based on the impugned notifications, which were under judicial scrutiny. The court concluded that there was no impediment to maintaining the writ petitions challenging the notifications and the show cause notice, even after replying to the notice. The court disposed of the writ petitions, quashing the notification dated 13th May 2013 and upholding the notification dated 25th June 2013.

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