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2023 (3) TMI 187 - HC - CustomsSeeking issuance of import licences in ‘Form X’ format as per Rule 88 of the Arms Rules, 2016 in respect of the licences that it has already procured from the Department of Defence Production (DDP), Ministry of Defence - import of restricted item - It is the case of the Petitioner that it obtained seven licences from the DDP for import of restricted items from the U.S. and various other countries - HELD THAT:- The factual situation reveals that in view of the applicability of the FTDR Act and the Arms Act, there has been some confusion between the authorities as to the manner in which licenses are to be granted for import of arms and parts thereof. The stand of the DGFT is that ‘Form X’ license would be required for import of fire arms in India. However, on a specific query as to whether there was any methodology prescribed for filing an application under ‘Form X’ on the DGFT portal, the Court has been informed that there is no procedure for online application under ‘Form X’ and a physical copy would have to be filed by the importer. Insofar as the DDP is concerned, though, it is the delegatee of the DGFT under the FTDR Act, insofar as the Arms Act is concerned, the power of granting import licence under the said Act has not been delegated. Even during the submissions before this Court when officials from both the authorities have appeared, it is clear that there was a lack of clarity on this matter which led to the issuance of the circular dated 8thFebruary, 2023 by the DDP, which now seeks to clarify all the required forms to be filled, the authorities to deal with the same and the permissions thereof to be granted. The clear position that therefore emerges is that the Petitioner has been issued licences for imports by the DDP. Two consignments have already arrived in India. These two consignments are in respect of licences which are at pages 61 and 64 of the writ petition. Both these consignments are meant for indigenisation of rifle production in India under Technology Transfer Collaboration with LMT Defence, USA, and for indigenisation of shotgun production in India under Technology Transfer Collaboration with Hugul Firearms Cooperative, Turkey. Such imports are crucial and clearly are meant to expedite indigenisation which is an important aspect of achieving self-sufficiency for defence purposes. The holding-up of these consignments on procedural grounds, especially owing to confusion between two authorities would be contrary to the object behind issuance of the licences itself by the DDP. Insofar as the defence requirements are concerned, the DDP is well conversant of the same and has duly licensed the imports. The application shall be made within a period of one week from now to the DGFT along with the requisite fee and the permission under ‘Form X’ shall be issued within a period of two weeks thereafter. It is made clear by the Petitioner that none of the products are meant for commercial sale and the same shall not be sold without obtaining requisite licenses and permissions. An undertaking to this effect shall be recorded by the DGFT at the time of processing the permission. The Petitioner is permitted to approach this Court by way of an application if there is any delay in processing of licence in ‘Form X’ or if any other objections are raised by the concerned department - Petition disposed off.
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