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2016 (3) TMI 794 - HC - CustomsClassification of importers of poppy seeds - cap on import of poppy seeds - CAs there were numerous importers, a policy was evolved to allot specified quantities of imported poppy seeds on ''first come first serve basis'' - Subsequently, the policy changed through public notice by classifying the importer into two categories - Held that:- In the impugned order, majority of the importers would be under the mercy of the few. The classification sought to be made would lead to monopoly, which in turn, would create an atmosphere of hostile discrimination. The impugned notice also does not reveal any reasons. There is no material to hold that there is a proper distribution of poppy seeds only through category 'A' exporters. Therefore, there is no public interest involved. It appears that the impugned notice is only an attempt to distribute the country cap in view of the large number of applications. Therefore, the object is only commercial. It could be seen that even an importer, who continuously imports for a period of two years, would be in a disadvantageous position than the one who did it for the preceding three financial years out of the total five financial years. Therefore, even though there was no import for two financial years out of five financial years, such an importer will gain predominant position as against others. By applying the decision of the Division Bench of Madras High Court in the case of Hotel & Bar (FL.3) Association of Tamil Nadu Vs. The Secretary to Government & another [2015 (5) TMI 138 - MADRAS HIGH COURT] and the decision of Apex Court in the case of Subramanian Swamy Vs. Director, Central Bureau of Investigation and another [2014 (5) TMI 783 - SUPREME COURT] and Reliance Energy Ltd. Vs. Maharashtra State Road Development Corporation Limited [2007 (9) TMI 409 - SUPREME COURT OF INDIA], the impugned public notice cannot be sustained in the eye of law. While there is a permissibility of latitude, it cannot be said that exclusion of importers on artificial classification can be justified in the eye of law. It is further to be seen that the very purpose of classification itself is for the reason that it is impossible to satisfy all the importers. Also the decision aforesaid has not taken into consideration of the concept of ''level playing field''. - Decided in favour of petitioner
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