TaxTMI 
TaxTMI 
TaxTMI 
2016 (3) TMI 794
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.... and other similar items. The poppy seeds are not Narcotic substance, though comes out of poppy plant. They are called ''Khas Khas'' and used widely for cooking in the country. In order to regulate import of poppy seeds, a country cap has been fixed. Accordingly, 50% of the estimated production from Turkey has been determined for cooking for the financial year 2015-2016. This total permissible country cap has to be apportioned between various importers. It is needless to state that all of them sell the imported poppy seeds for the same purpose - cooking. As there were numerous importers, a policy was evolved to allot specified quantities of imported poppy seeds on ''first come first serve basis''. 3. A challenge was made to the procedure aforesaid, being arbitrary and offending Article 14 of the Constitution of India. Interim orders have also been obtained. Thereafter, the said policy was changed by dividing all the applicants into two categories. Category - A consists of the importers, who have imported poppy seeds from Turkey to India for atleast three financial years during the last five financial years. They would be allotted a quantity from the....
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....epelled. Writ Appeals are stated to be filed in W.A.Nos.4857 of 2015 and 132 of 2016 and W.A.No.4857 of 2015 was dismissed and W.A.No.132 of 2016 is pending, though without any interim order. 6. Learned Senior Counsel appearing for the petitioner submitted that the impugned notice is total in violation of Article 14 of the Constitution of India. There is no level playing field and it will lead to trading by the category 'A' importers with the category 'B' importers, inclusive of those who may not get any allotment. There is no justifiable classification having nexus to the object sought to be achieved. All the parties are using the poppy seeds for the very same purpose. There is no differentiation in the eye of law, which could be justified. Merely because some of the importers are doing business for more years, they cannot be given a higher benefit. Of the 180 Category 'B' importers, only 22 of them have been given, that too, by way of lots. A Category 'B' importer can never come to category 'A'. The public notice itself has got an in-built mechanism to take care of defaulters. Therefore, it cannot be said that only such persons, who are do....
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.... classification of three years of import for the preceding five financial years. As there is no dispute that all the importers are catering to the needy persons for the very same purpose, such a classification is illusory, artificial and evasive. A classification has to be reasonable. A differentiation must distinguish a group of persons, relatable to the object. There has to be an element of rationality. Therefore, the reasonable relation must be to the object meant for. A differentiation forming basis of a classification must be sound. 10. By the impugned classification, the new entrants and the importers having less than three financial years during the last five financial years are substantially prejudiced. They get their chance only after Category 'A'. Therefore, there is an element of speculation involved. Either they would be driven out of the market or forced to buy from the traders of importers of Category 'A'. The impugned public notice also provides for debarment and eligibility criteria, when an importer has failed to honour the commitment of import. Therefore, it cannot be said that only category 'A' importers alone would continue the supply. M....
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....re is a platform for level playing field between the importers. A right to life includes ''opportunity''. A decision of an authority shall take in its sweep ''non-discrimination''. When a decision becomes unreasonable, affecting the rights of the parties, then, it would certainly affect Article 14 of the Constitution of India. The scope and ambit of Article 14 is well known through the various judgments rendered by the Constitutional Courts. 12. In Hotel & Bar (FL.3) Association of Tamil Nadu Vs. The Secretary to Government & another, (2015-2-L.W.497), a Division Bench of this Court culled out the principle governing Article 14 in the following manner: ''19. When a challenge is made to an enactment on the ground of Article 14 being violated, it must be demonstrated that there is an element of negation of equality. A mere discrimination per se cannot be termed as arbitrary, as a classification is meant for providing benefits to a group of persons. A differentiation must distinguish a group of persons or things identified as such from the things left out. While dealing with the classification, an accurate one is not possible. Revenue and econ....
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....tandards applied by courts in judicial review must be justified by constitutional principles which govern the proper exercise of public power in a democracy. Article 14 of the Constitution embodies the principle of "non-discrimination". However, it is not a free- standing provision. It has to be read in conjunction with rights conferred by other articles like Article 21 of the Constitution. The said Article 21 refers to "right to life". It includes "opportunity". In our view, as held in the latest judgment of the Constitution Bench of nine-Judges in the case of I.R. Coelho vs. State of Tamil Nadu (2007) 2 SCC 1, Article 21/14 are the heart of the chapter on fundamental rights. They cover various aspects of life. "Level playing field" is an important concept while construing Article 19(1)(g) of the Constitution. It is this doctrine which is invoked by REL/HDEC in the present case. When Article 19(1)(g) confers fundamental right to carry on business to a company, it is entitled to invoke the said doctrine of "level playing field". We may clarify that this doctrine is, however, subject to public interest. In the world of globalization, competition is an important factor to be kept in ....
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....rned Senior counsels for the respondents on the decision of the Karnataka High Court. As rightly submitted by the learned Senior counsel appearing for the petitioner, the said decision does not deal in the perspective of Article 14 and 19(1)(g) of the Constitution of India. The only passage, which deals with the merits of the case, is as under: ''5. In the light of the above rival contentions, it is an admitted fact that the petitioner is not an applicant seeking registration of any sale contracts for the import of poppy seeds from Turkey, as against the impugned notification. The malafides urged against the respondents, in relation to the earlier public notifications are no longer relevant as the respondents have abandoned the said notifications. This would only require the limited questions of whether the policy now sought to be adopted by the respondents of categorization of importers lacks a rational basis. As has been demonstrated by the respondents in relation to the actual figures as to the number of applicants and the quantity available for allocation, it cannot be said that it leads to any imbalance or is arbitrary. It may not be the best policy that could have b....