TMI Blog2019 (8) TMI 1387X X X X Extracts X X X X X X X X Extracts X X X X ..... as inserted by a 2010 amendment, and confers power on the Central Government to impose quantitative restrictions on imports. Section 9-A says that the Central Government may, after conducting a suitable enquiry, if satisfied that any goods are imported into India in large quantities and under such conditions as injure or threaten to injure domestic industry, it may impose quantitative restriction. These restrictions can continue for a maximum of four years, extendable by a like period - Once, therefore, we find that there is a power to regulate and a power to impose quantitative restrictions, and there is no challenge to the exercise of that power, it is difficult to see what remains in the Petition. Merely saying that a certain clause is, in the Petitioner s view, sub-optimal, or leaves something to be desired, is not enough to warrant a striking down of the notification. We cannot, equally, substitute our view for government policy framed in legitimate exercise of statutory power. Once, therefore, we see that the presently impugned Guidelines are but a step towards implementing a policy that has not only been in place in some form for many years previously, but is in furtheran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... import in question is from Turkey. According to the Petitioners, these guidelines are an unconstitutional restriction on their right to trade and carry on business. 3. We disagree. 4. That poppy seed import into India is regulated by the CBN is undisputed. The Petitioners are registered importers. They have the necessary licenses. They agree, further, that there is annual cap or quota on poppy seed import from various points of origin. There is a cap on the quantity that may be imported for each foreign exporter country. Until recently, import permissions were by sale of lots. 5. On 25th June 2019, the 2nd Respondent issued the impugned public notice No. 9/2019, notifying guidelines for registration of sales contract in regard to poppy seed imports from Turkey. A copy of these guidelines is at Exhibit E to the Petition, from page 32 onwards. We go to those directly. 6. The guidelines are specific to poppy seed imports from Turkey. They speak, in clause I, of a determination of a country cap. This cap is to be approved by the Department of Revenue, based on a recommendation by the Narcotics Commissioner, a representative of the Director ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cie discriminatory, and not just discriminatory, but invidiously so. If a classification is challenged, it must be shown that it bears no nexus to the object of the impugned law. The petitioners are able to do none of this. 9. What is, however, clear is that this notification has been framed pursuant to a Memorandum of Understanding dated 23rd May 2018 between India and Turkey. By a Notification dated 29th July 2016, the government of India conferred powers on the Department of Revenue to frame guidelines (fixing country caps, imposing limits on import quantities per importer or in the aggregate and so on). These were intended to give effect to the National Policy on Narcotic Drugs and Psychotropic Substances, controlled by the Narcotic Drugs Psychotropic Substances Act, 1985 ( NDPS Act ). Obviously, this MoU, a sovereign act, is not open to challenge. What the impugned Notification does is to provide guidelines and to restrain exercise of unfettered discretion. The Notification guidelines serve to filter out all but genuine and bona fide importers and prevent cartelization, artificial blocking of country caps, and artificial raising of re-sale prices. Notably, no ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11. The power to impose quantitative restrictions can be traced to Chapter III-A of the Foreign Trade (Development Regulation) Act 1992. This was inserted by a 2010 amendment, and confers power on the Central Government to impose quantitative restrictions on imports. Section 9-A says that the Central Government may, after conducting a suitable enquiry, if satisfied that any goods are imported into India in large quantities and under such conditions as injure or threaten to injure domestic industry, it may impose quantitative restriction. These restrictions can continue for a maximum of four years, extendable by a like period. 12. We have noted this precisely because the source of power under both Act is not questioned by the Petitioners before us at all. Once, therefore, we find that there is a power to regulate and a power to impose quantitative restrictions, and there is no challenge to the exercise of that power, it is difficult to see what remains in the Petition. Merely saying that a certain clause is, in the Petitioner s view, sub-optimal, or leaves something to be desired, is not enough to warrant a striking down of the notification. We cannot, equally, su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioners themselves had to have followed them in the past. 14. The Allahabad Division Bench noted that the Import Policy casts on the CBN, a specialized body, the duty of registering contracts. This is with the stated public purpose of protecting the due implementation of the policy of the Government of India of not permitting import of poppy seeds from non-designated countries. It is in pursuance of that policy that the conditions of the notification require a certificate that the poppy seeds originate in a country where opium poppy is grown legally. The Import Policy is a statutory document enacted in pursuance of the Import and Export Control Act, 1947. Then there is a reference to the National Policy on Narcotic Drugs and Psychotropic Substances. 15. Once, therefore, we see that the presently impugned Guidelines are but a step towards implementing a policy that has not only been in place in some form for many years previously, but is in furtherance of a policy to promote the larger public interest, then the narrow commercial interests of the Petitioners must yield. Viewed from this perspective, we do not think the decision of learned single Judge of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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