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2018 (10) TMI 1160 - HC - CustomsImport of Ethylene Di-chloride (EDC) - Restricted item or not - exemption under Section 38 of the Insecticides Act - whether for the import of EDC for the purpose of manufacturing Poly Vinyl Chloride (PVC), an import permit is required, from the Central Insecticides Board (CIB) and Registration Committee (RC) constituted under the Insecticides Act, 1968? Held that:- There is absolutely no provision under the Act or prescription under the Rules for issuance of an import permit or an application in that respect wherein import is made of a substance, included under the Schedule to the Act, for non-insecticidal purpose. The mere prescription of a proforma for issuance of an import permit by the RC under the Insecticides Act cannot be termed to be a requirement under the statute. Neither the Act nor the Rules provide for any import permit under the Insecticides Act for the purpose of import of insecticides included in the Schedule under the Act; when such import is for non-insecticidal purposes. The exemption under Section 38 takes any goods imported for non-insecticidal purposes even if included in the Schedule to the Act, out of the coverage of the Act and Rules prescribed thereunder. In Maliakkal Industrial Enterprises [2015 (11) TMI 1027 - KERALA HIGH COURT] the issue dealt with was import of Boric Acid, admittedly an insecticide, requiring a permit even if it is for non-insecticidal purposes. However there a notification was issued by the Central Government under the Foreign Trade Act insisting on an import permit from the RC constituted under the Insecticides Act - The requirement for an import permit in Maliakkal Industrial Enterprises was upheld only in the context of a statutory requirement having been made under the Foreign Trade Act, which is absent in the present case. The object of the Insecticides Act though salutary, there is not enough safeguards provided by the Act or power conferred on the executive government to deal with substances coming under the Schedule of the Insecticides Act; used for non-insecticidal purposes. Any import of the subject substance for non-insecticidal purpose shall be released as per the procedure prescribed by the Customs Authorities, by trade notices without insisting for registration under the Insecticides Act or an import permit - appeal dismissed - decided against Revenue.
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