Court Grants Interim Stay on Foreign Trade Act Notifications

The court granted an interim stay on notifications dated 29.3.2019 and 16.4.2019 under the Foreign Trade Act. The notification by the Central Government was found prima facie valid but with questionable retrospective effect, leading to a directive for prospective application only to the petitioner. The order by the Directorate General of Foreign Trade attempting to modify the notification was stayed. The respondents were instructed to release the petitioner's commodities subject to duties, pending the outcome. The court emphasized the distinction between the validity of the notifications and the need for prospective application, ensuring compliance with legal requirements.

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Issues:
Interim stay of notifications dated 29.3.2019 and order dated 16.4.2019 - Prima facie vires of notification under Foreign Trade Act - Operative retrospectively - Modification of notification by Directorate General of Foreign Trade.

Analysis:
The petitioner sought similar indulgence in the interim as granted in a previous case, citing identical merits and principles of parity and comity of court. The notification dated 29.3.2019, issued by the Central Government under the Foreign Trade (Development and Regulation) Act, 1992, was considered prima facie intra vires Section 3 of the Act. However, the retrospective operation of this notification was deemed questionable, leading to a directive for prospective application only concerning the petitioner. The order dated 16.4.2019 by the Directorate General of Foreign Trade, attempting to modify the Central Government's notification under the guise of clarification, was stayed. Consequently, the respondents were instructed to release the petitioner's commodities, subject to payment of duties and pending the outcome of the petition.

A direction was given to serve a copy of the petition on specific individuals and list the case for further proceedings on a specified date. The judgment highlighted the distinction between the validity of the Central Government's notification and the Directorate General of Foreign Trade's subsequent order, emphasizing the need for prospective application and the limitation on retrospective operation. The court's decision aimed to balance the interests of the petitioner and ensure compliance with legal requirements under the Foreign Trade Act, pending a final resolution in the ongoing legal proceedings.

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