Case Note & Summary
The case involved a challenge by the Indo Afghan Chambers of Commerce against the grant of additional licences to diamond exporters for importing dry fruits under the Import Policy 1985-88. The petitioners contended that the goods sought to be imported were prohibited under the existing Import Policy and that the diamond exporters were not entitled to import dry fruits as they did not qualify as dealers in that trade. The respondents argued that they were importing dry fruits as raw materials for processing and that the import was permissible under the policy. The court analyzed the provisions of the Import Policy, particularly the distinction between consumer goods and raw materials, and concluded that dry fruits, being classified as consumer goods, could not be imported under the Additional Licences held by the diamond exporters. The court emphasized that the diamond exporters did not meet the criteria for being considered dealers in dry fruits and thus were not entitled to the advantages of the policy. Ultimately, the court allowed the writ petition, restraining the diamond exporters from importing dry fruits during the specified period under the Additional Licences. The decision underscored the importance of adhering to the classifications and restrictions set forth in the Import Policy. The court also addressed the maintainability of the writ petition under Article 32, asserting that interim orders cannot infringe upon the fundamental rights of the petitioners. The appeal against the Bombay High Court's order was allowed, reinforcing the restrictions on the import of dry fruits by the diamond exporters.
Headnote
A) Import Policy - Additional Licences - Restriction on Import of Dry Fruits - Import Policy 1985-88 - The court held that diamond exporters cannot import dry fruits under Additional Licences as they are not dealers engaged in the trade of stocking and selling dry fruits, and dry fruits are classified as consumer goods, thus excluded from import under the relevant policy provisions. (Paras 94-97).
Issue of Consideration
Whether diamond exporters are entitled to import dry fruits under Additional Licences granted to them under the Import Policy.
Final Decision
The court allowed the writ petition, restraining the diamond exporters from importing dry fruits during the period 1985-88 under the Additional Licences granted to them. The appeal against the Bombay High Court's order was also allowed, setting aside the previous judgment and reinforcing the restrictions on the import of dry fruits.
Law Points
- Import Policy
- Additional Licences
- Open General Licence
- Consumer Goods
- Agricultural Origin
- Writ Petition under Article 32
