Permission for clearance and loading of Non-Basmati Rice for export affirmed; authorities ordered to assess shipping bills and permit export.

Condition (ii) of para 2 of Notification No. 20 of 2023 was interpreted to require confirmation that the vessel had arrived/anchored and that voyage call/rotation numbers were allotted prior to the notification; those conditions were satisfied on the facts because the vessel anchored at Indian ports before the notification and voyage call and rotation numbers were allocated before 20.07.2023, so the embargo did not bar export under ten shipping bills. Authorities were directed to finally assess the ten shipping bills and, under Section 51 of the Customs Act, permit clearance and loading of 13,500 metric tons of Non-Basmati Rice for export.

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Issues Involved:
1. Legality of non-permission to export Non-Basmati Rice.
2. Interpretation of Notification No. 20 of 2023 regarding conditions for export.
3. Compliance with conditions specified in the notification by the petitioners.

Summary:

Issue 1: Legality of Non-Permission to Export Non-Basmati Rice
The petitioners challenged the action of respondent nos. 2 and 3 for not permitting the export of Non-Basmati Rice from Kandla Port. They had received orders from a Mozambique-based company for 55,000 metric tons of Non-Basmati Rice and had submitted 46 shipping bills before the prohibitory notification was issued on 20.07.2023. The customs authority accepted all shipping bills and provided acknowledgment numbers. However, the export of 13,500 metric tons covered under ten shipping bills was not permitted as the export duty was paid after the notification.

Issue 2: Interpretation of Notification No. 20 of 2023
The key contention revolved around the interpretation of condition no. (ii) of para 2 of Notification No. 20 of 2023, which allowed export if the vessel had berthed or arrived and anchored in Indian ports before the notification. The petitioners argued that the vessel M.V. KEN COLON arrived at Kandla Port on 11.07.2023 and was allotted a rotation number on 18.07.2023, thus fulfilling the condition. However, the customs authority contended that the vessel did not berth for the purpose of export before 20.07.2023.

Issue 3: Compliance with Conditions Specified in the Notification
The court examined whether the petitioners met the conditions specified in para 2 of the notification. It was established that the vessel arrived in Indian ports before 20.07.2023, and the rotation number was allotted on 18.07.2023. The court concluded that the petitioners fulfilled the condition no. (ii) of the notification, as the vessel had anchored in Indian ports and had a rotation number allocated before the notification.

Judgment:
The court held that the petitioners met the requirements of condition no. (ii) of para 2 of Notification No. 20 of 2023. Consequently, it directed the respondent authorities to finally assess the ten shipping bills and permit the clearance and loading of 13,500 metric tons of Non-Basmati Rice on a vessel hired by the petitioners for export. The petition was allowed, and the rule was made absolute to the extent of permitting the export. No order as to costs was made.

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