Case Note & Summary
The case involved a challenge to the new policy circulars issued by the Director General of Foreign Trade (DGFT) that imposed a ban on DTA sales by 100% Export Oriented Units (EOUs) and limited the issuance of licenses to specific applicants. The petitioner, M/s Hindustan Granites, contended that the new policy was enacted without proper consultation and deprived them of their rights to sell accumulated waste in the domestic market. The Supreme Court noted that the writ petitions challenging the new policy had been transferred to it and recognized the urgency of the matter due to the impending lapse of entitlements for the financial year 2005-06. The Court ordered DGFT to provide the material related to the new policy to the affected EOUs and allowed them to make representations regarding their grievances. The Court also indicated that the question of whether the new policy constituted a change in the existing policy would be examined in detail at the next hearing. The interim order from the Rajasthan High Court was stayed, and the matter was scheduled for further hearing on 31.1.2007.
Headnote
A) Administrative Law - Policy Circulars - Interim Relief - Transfer of Writ Petitions - Supreme Court directed DGFT to grant licenses under the previous policy circular while addressing grievances of affected EOUs regarding new policy changes - Held that affected parties must be given opportunity to represent their case (Paras 1-2).
Issue of Consideration
Whether the impugned policy circulars constitute a change in policy and the rights of affected EOUs regarding DTA sales.
Final Decision
The Supreme Court directed DGFT to provide the material related to the new policy to the affected EOUs and allowed them to make representations. The interim order from the Rajasthan High Court was stayed, and the matter was scheduled for further hearing on 31.1.2007.
Law Points
- Interim relief
- licensing procedures
- policy circulars
- representation rights
- export-oriented units
