Case Note & Summary
The petitioner, an importer, entered into two contracts for import of Yellow Peas from Ukraine. The balance 90% payment was made on 23.05.2018 and 04.06.2018; shipments were loaded on 28.04.2018 and 10.05.2018 and arrived at the port of discharge on 23.05.2018 and 31.05.2018. A restriction on import of Yellow Peas was extended on 02.07.2018 till 30.09.2018, but was withdrawn on 29.08.2018 by Notification No. 31/2015-20. The very next day, 30.08.2018, a fresh restriction was imposed by Notification No. 32/2015-20. The petitioner sought permission to lift the consignments without being subjected to this restriction. The respondents argued that the petitioner’s grievance was redressed by a registration certificate issued on 19.09.2018 for 250 MT, but that relief was limited. The court observed that the notification imposing the restriction on 30.08.2018 did not contain any words giving it retrospective effect and the respondents’ own trade notice No. 10 dated 16.05.2018 clarified that policy changes apply prospectively unless otherwise provided. Citing the Supreme Court’s ruling in Director General of Foreign Trade v. Kanak Exports, the court held that the restriction did not apply to imports already cleared and contracts fully executed before 30.08.2018. The writ petition was allowed, and the respondents were directed to permit the petitioner to lift and use the imported Yellow Peas without subjecting them to the restriction. The order was stayed for one week to enable the respondents to appeal.
Headnote
A) Foreign Trade Policy - Import Restrictions - Prospective Application - Notification No. 32/2015-20 dated 30.08.2018 - The restriction on import of Yellow Peas imposed on 30.08.2018 does not operate retrospectively as the notification does not contain any words providing otherwise and policy changes apply prospectively from the date of notification. The court relied on the principle laid down in Director General of Foreign Trade v. Kanak Exports (2016) 2 SCC 226 that circulars and trade notifications cannot have retrospective effect. Held: The petitioner was entitled to lift and use imported Yellow Peas without being subjected to the restriction. (Paras 10-13)
Issue of Consideration
Whether the restriction on import of Yellow Peas imposed by Notification No. 32/2015-20 dated 30.08.2018 applies retrospectively to imports already cleared and contracts executed before that date.
Final Decision
Writ petition allowed. Respondents directed to permit petitioner to lift and use imported Yellow Peas in the two shipments without subjecting them to the restriction imposed by Notification No. 32/2015-20 dated 30.08.2018. Order stayed for one week.
Law Points
- Policy change applies prospectively from date of notification unless otherwise provided
- Administrative circulars cannot have retrospective effect
- Notification imposing restriction operates prospectively only
