Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2014 (9) TMI 288

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rpose of implementing the important stipulations, which have made in the Import Policy for protecting the nation against the serious consequences of an illegal trade in poppy seeds. Insofar as the petition is concerned, the first prayer seeks strict adherence to the conditions contained in the Union Government’s Notification dated 5 October, 2012. There can be no gainsaying the fact that each of the conditions contained in the notification must be scrupulously enforced. Insofar as the second prayer is concerned, there is no manner of dispute in the submissions urged before the Court by either of the parties that import of poppy seeds is permissible only from a designated country and no import can be effected from a country, which is not designated in the notification. The authorities are sufficiently vested with wide powers to ensure that the law is duly observed. - the regulation of the trade in narcotics including of those ancillaries is a matter of continuous vigil. Hence, if facts are brought to the notice of the Narcotics Commissioner or information is received even after registration of a contract which would indicate that registration has been improperly procured or i .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ations for the import of poppy seeds : (3) Import of Poppy Seeds (Exim Code No. 1207 91 00) shall be allowed subject to the following conditions : (a) Import permitted only from Australia, Austria, France, China, Hungary, the Netherlands, Poland, Slovenia, Spain, Turkey and Czech Republic; (b) The importer shall produce an appropriate certificate from the competent authority of the exporting country that Opium Poppy have been grown licitly/legally in that country as per requirements of International Narcotics Control Bureau (website : http://www.incb.org); and (c) All import contracts for this item shall compulsory be registered with the Narcotics Commissioner, Central Bureau of Narcotics, Gwalior (website : http://cbn.nic.in) prior to import. 3. An amendment to the aforesaid condition was brought into force by a notification dated 5 October, 2012. As originally framed, condition 3 contained three stipulations; (i) import of poppy seeds was permitted only from eleven countries specifically named; (ii) the importer was required to produce an appropriate certificate from the competent authority of the exporting country that opium poppy has been grown lici .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ted under the Single Convention; and (ii) the country of origin is capable of exporting poppy seeds. It is also urged that CBN does not verify the certificate of origin prior to import. CBN, it is alleged, has registered contracts of between 1.5 to 2.00 lac metric tonnes, whereas the authorized quantity of production is between 50,000 to 80,000 metric tonnes. 7. These submissions were sought to be buttressed with reference to the import of poppy seeds from Turkey. The petitioners have produced before the Court a statement drawn from a website of the Department of Commerce regarding an export-import data bank showing that for 2011-12, poppy seeds were imported from as many as thirty two countries of which twenty one are not in the list of permitted countries in the conditions described in the Import Policy. The Director General of Foreign Trade (DGFT) in an Office Memorandum dated 14 December, 2012 addressed to the Central Board of Excise and Customs and the Department of Revenue stated that the import of poppy seeds was allowed from eleven countries originally, while six additional countries were allowed by a notification dated 5 October, 2012. However, it has been observed from .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ernment shall ensure that imports are carried out in accordance with the notification dated 5 October, 2012. 9. On 18 April, 2013, the present public interest litigation was filed purportedly on behalf of certain farmers seeking similar reliefs, commanding strict adherence to the notification dated 5 October, 2012; restraining import of poppy seeds from a country not specified in the notification and other consequential relief. The petition which was filed before this Court, it is an admitted position, contains a verbatim reproduction of the pleadings before the Delhi High Court in the second petition noted above. Of the sixty four farmers whose names are set out in an Annexure to the present proceedings, nine are shown from the State of Uttar Pradesh. The names of the remaining farmers who hail from the States of Madhya Pradesh and Rajasthan were also appended to the petition which was filed before the Delhi High Court. 10. On 18 April, 2013, an interim direction was issued by a Division Bench of this Court that the import of poppy seeds shall not be made from countries which are not notified or permitted by the Government of India or by any other competent authority. On 22 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... farmers on whose behalf the case has been instituted, fifty five are shown from the States of Madhya Pradesh and Rajasthan, whereas nine are said to be from the State of Uttar Pradesh. The group of fifty five is drawn from the petition in the Delhi High Court. Apart from these circumstances, we are constrained to observe that in the affidavit filed in support of the application for modification of the first interim order, which was passed by the Division Bench on 18 April, 2013, it was stated that the Union Government had allowed imports from Turkey of 2.00 lac metric tonnes of white poppy seeds, which was alleged to be in excess of the total production in Turkey. Moreover, it was stated that between April and October, 2011, the import of white poppy seeds from Turkey was 2,61,754 metric tonnes, whereas from April, 2012 to March, 2013, the figure had increased to 5,23,252 metric tonnes. This is sought to be explained by stating that the annexures to the affidavit contain details of the contracts which were registered and not of actual imports. Be that as it may, it is evident that the basis on which a general interim direction was issued by the Division Bench of this Court restrain .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... se proceedings, is undoubtedly a matter of national interest. This is clear from the affidavit of CBN, Gwalior, which emphasises the rationale for regulation of the international trade in poppy seeds, as follows :- That the control over international trade in poppy seed was introduced to implement the Action Plan on International Co-operation on the Eradication of Illicit Drug Crops which was part of resolution S20/4 E adopted by the 20 Special Session of UN General Assembly on 10 June, 1998 followed by the resolution 1999/32 adopted by the Economic Social Council of the UN, as a preventive measure to check the growing illicit poppy cultivation which has been a cause of concern for international community as it indirectly promotes the illicit cultivation of opium poppy and also produces opium for illicit manufacture of heroin posing serious economic, social and political challenges. 15. The Policy governing the import of poppy seeds prescribes three conditions subject to which such imports would be allowed. Hence, while the policy allows free import of poppy seeds, such import is subject to those conditions which have been prescribed. The first condition is that such imp .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nes in 2012. 16. The affidavit which has been filed on behalf of the DGFT states that registration of import contracts is the responsibility of CBN. However, Customs field formations at the port of entry are responsible for implementing the import policy and policy conditions which are prescribed. Customs Authorities are responsible for verifying the certificate from the competent authority of the exporting country which is required to be produced by the importer at the time of import of poppy seeds. The importer is required to file a copy of such certificate along with other documents seeking clearance of the goods. Customs field formations are also responsible to ensure that poppy seeds are not imported from any country other than those designated in the notification dated 5 October, 2012. 17. DGFT has stated that based on the data on import of poppy seeds as available in December, 2012, it was noticed that imports were taking place from some non-designated countries, consequent upon which the matter was brought to the notice of the Central Board of Excise Customs on 14 December, 2012. In August, 2013, the data of the last 5 years (2008-09 to 2012-13) was verified which i .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 2000, which reads as follows :- (i) Import permitted only from Australia, Austria, France, China, Hungry, the Netherlands, Poland, Slovenia, Spain. Turkey and Czech Republic. (ii) The importer shall produce an appropriate certificate from the competent authority of the exporting country that Opium Poppy have been grown licitly/legally in that country as per requirements of International Narcotics Control Board (INCB) and (iii) All import contracts for this item shall compulsory be registered with the Narcotics Commissioner, Gwalior prior to import. Additionally, the registration of import contract involves verification of legitimacy of the transaction and genuineness of the importer. Other Government Agencies or any International Organization are consulted as and when required. (emphasis supplied) 19. The second document to which a reference would be necessary, at this stage, is the National Policy on Narcotic Drugs and Psychotropic Substances. Paragraph 17 of the Policy specifically adverts to the role of the Narcotics Commissioner before registering contracts, in the following terms :- 17. Import of poppy seeds will continue till self-sufficien .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... he poppy seeds are proposed to be imported (i) legally cultivates opium poppy; and (ii) can produce the quantity of seeds which are sought to be imported. The statements in both these policy documents constitute a matter of high public policy for the Union Government in its stated object to combat the international trade in narcotic drugs and psychotropic substances. CBN cannot denude itself of the obligation and function which has been cast upon the Narcotics Commissioner. The discharge of the functions by the Narcotics Commissioner must be consistent with the purpose of implementing the important stipulations, which have made in the Import Policy for protecting the nation against the serious consequences of an illegal trade in poppy seeds. 22. Insofar as the petition is concerned, the first prayer seeks strict adherence to the conditions contained in the Union Government s Notification dated 5 October, 2012. There can be no gainsaying the fact that each of the conditions contained in the notification must be scrupulously enforced. Insofar as the second prayer is concerned, there is no manner of dispute in the submissions urged before the Court by either of the parties that imp .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates