2016 (11) TMI 502 - SC - Central Excise

100% EOU - 100% export of Pan Masala, Gutkha and Tobacco in multilayered plastic sachet - exemption contained under Rule 2 of Plastic Wastes (Management & Handling) Rules, 2011 - Held that - a Writ Petition under Article 32 of the Constitution filed by Baba Global Ltd. has been finally disposed of by permitting the 100% export of Pan Masala, Gutkha and Tobacco in multilayered plastic sachet; and in Harsh International interim orders have been passed exempting the writ petitioner from the operation of the said 2011 Rules - e think it is imperative to impart parity to all the writ petitioners before us. In these circumstances, we pass orders similar to those passed in Harsh International namely that during the pendency of the present proceedings, the petitioner shall stand exempted from the operation of the 2011 Rules on the understanding that it shall strictly abide by all the terms contained in the undertaking furnished by it in terms of its Affidavit dated 28th July, 2015 - petition allowed - decided in favor of petitioner.

Summary

Issues:
1. Availability of exemption under Rule 2 of Plastic Wastes (Management & Handling) Rules, 2011 for exporting Pan Masala, Gutkha, and tobacco in plastic packaging.
2. Validity of Rules 5(d) and 5(g) of Plastic Waste (Management & Handling) Rules, 2011 under Articles 14 and 19(1)(g) of the Constitution and Environment (Protection) Act, 1986.

Issue 1: Availability of Exemption under Rule 2 for Exporting Pan Masala, Gutkha, and Tobacco:

The petitioner sought a writ of mandamus for exemption under Rule 2 of Plastic Wastes (Management & Handling) Rules, 2011 to export Pan Masala, Gutkha, and tobacco in plastic packaging. The Court noted similarities with a previous case and emphasized the petitioner's undertaking not to sell products in the local market. Referring to past judgments, the Court acknowledged the exemption granted to other exporters and directed similar treatment for the present petitioner. The Court granted temporary exemption from the 2011 Rules during the proceedings, subject to compliance with the undertaking provided by the petitioner.

Issue 2: Validity of Rules 5(d) and 5(g) under Constitutional and Legal Provisions:

The petitioner challenged the validity of Rules 5(d) and 5(g) of Plastic Waste (Management & Handling) Rules, 2011, alleging violations of Articles 14 and 19(1)(g) of the Constitution and the Environment (Protection) Act, 1986. The Union of India contended that the petitioner's undertaking did not fulfill legal requirements, leading to a review being filed and subsequently dismissed. Despite this, the Court upheld its previous order granting exemption based on precedents set in earlier cases. The Court confirmed the order dated 13-10-2015 and allowed the writ petition, aligning with the decision in the Baba Global Ltd. case.

In conclusion, the Supreme Court addressed the issues surrounding the availability of exemption for exporting specific products in plastic packaging and the validity of certain rules under constitutional and legal provisions. The judgment highlighted the importance of maintaining parity among petitioners and emphasized compliance with undertakings to ensure adherence to legal requirements.