TaxTMI 
TaxTMI 
1991 (1) TMI 305
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....t Inspection Council/Agency can be conveniently disposed of by common judgment, as the issues raised in the two petitions are identical. By these petitions the petitioners are seeking a declaration that Notifications dated October 6,1990 and October 19, 1990 are ultra vires the provisions of Section 16A of the Export (Quality Control and Inspection) Act, 1963 as well as violative of Article 14 of the Constitution of India. 2. The Export (Quality Control and Inspection) Act, 1963 was enacted by the Parliament to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith. Section 3(1) of the Act confers power upon the Central Government to establish Export In....
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....y a certificate issued under Section 7 that the commodity satisfies the conditions relating to quality control. This requirement of a certificate issued under Section 7 is dispensed with by the two notifications in respect of export of engineering products and export of footwear and footwear components, respectively by the Star Trading Houses, Trading Houses and Export Houses recognised by the Central Government. The two petitions challenge legality of these notifications. 3. Shri Grover, learned counsel appearing on behalf of the petitioners, raised two contentions to challenge legality of the notifications. The first submission of the learned counsel is that powers under Section 16A(1) of the Act can be exercised only when the Central Go....
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....ted, but urged that in the present case there are no circumstances whatsoever in existence to suspend the provisions of sub-section (d) of Section 6 of the Act in respect of export of engineering products and footwear and footwear components. The submission is not correct. In the return filed on behalf of the respondents it is pointed out that the Government decided to exempt the Star Trading Houses, Trading Houses and Export Houses from the purview of compulsory pre-shipment inspection because these houses have established credentials in markets abroad and have been recognised by the Central Government keeping in view their past track record in the field of exports. The return further claims that bulk of the exports of these houses have be....