2023 (3) TMI 1337 - HC - Customs

Court affirms Poppy Seeds import policy amendment, validates government authority under Foreign Trade Act

The Court upheld the validity of the amendment to the Import Policy Condition regarding Poppy Seeds, emphasizing the Central Government's authority under ... Jurisdiction - power of DGFT to amend the Import Policy Condition - competent authority - delegation of power - validity of Notification No.17/2015-20 dated 29.07.2016 issued by the Central Government under Section 3 of the Foreign Trade (Development and Regulation) Act, 1992 - import of poppy seeds - HELD THAT:- In the present case, the amendment was made subject to Import Policy Condition No.3 of Chapter 12 of the ITC (HS), 2012 Schedule I (Import Policy). The Gazette Notification Extraordinary unambiguously stipulates that “In exercise of powers conferred by Section 3 of Foreign Trade (Development and Regulation) Act, 1992, read with paragraphs 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, as amended from time to time, the Central Government hereby amends the Import Policy Condition No.3 of Chapter 12 of ITC (HS), 2012'. Thus the amendment was issued by the Central Government in exercise of the powers conferred under Section 3 of the Foreign Trade (Development and Regulations) Act, 1992, the alleged signature of the Director General of Foreign Trade made pursuant to the application of powers under Administrative Law shall not invalidate the Notification, which is otherwise, issued pursuant to Section 3 of the Foreign Trade (Development and Regulations) Act, 1992 - Once the Central Government invoked the powers in the Act and issued Gazette Notification, the said Notification amounting to merit of policy of the Government cannot be challenged simply on the ground that the said Notification was signed by the Director General of Foreign Act. The Directorate General of Foreign Trade (DGFT) was given delegation of powers for signing the Notification in view of the smooth functioning of the Central Government Administration - this Court do not find any infirmity in respect of the amendment issued to the Foreign Trade Policy. Petition dismissed. Issues:The challenge to Notification No.17/2015-20 dated 29.07.2016 under the Foreign Trade (Development and Regulation) Act, 1992.Summary:The petitioner, a registered dealer under the Tamil Nadu Value Added Tax Act, engaged in importing Poppy Seeds from China and Turkey, challenges the impugned Amendment in the Import Policy Condition No.3 of Chapter 12 of ITC (HS) 2012. The petitioner argues that the Director General of Foreign Trade lacked jurisdiction to issue the amendment, contending that only the Central Government has the authority to do so.The Central Government, as per Section 3 (1) of the Foreign Trade (Development and Regulations) Act, 1992, is empowered to regulate foreign trade by facilitating imports and increasing exports. The Gazette Notification clearly states that the Central Government, in exercise of its powers under the Act, amended the Import Policy Condition No.3 of Chapter 12 of ITC (HS) 2012. The amendment specified conditions for importing Poppy Seeds from certain countries and required the importer to provide a certificate from the Competent Authority of the exporting country.The Court upholds the validity of the amendment, emphasizing that the Central Government's authority to issue such regulations cannot be undermined by the signing authority, in this case, the Director General of Foreign Trade. The delegation of powers to the DGFT for signing notifications is deemed necessary for the efficient functioning of the government administration.In conclusion, the Court finds no fault in the amendment to the Foreign Trade Policy and dismisses the writ petition, along with the connected miscellaneous petitions, without any costs.