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2023 (1) TMI 1063

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..... ority, the Petitioner is permitted to seek refund of the demurrage charges in accordance with law. The said application may be filed within a period of two weeks and, if preferred, shall be decided within a period of four weeks. Petition disposed off. - W.P.(C) 3521/2021 & CM APPLs.10664/2021, 38417/2021, 38428/2021, 50490/2022 and W.P.(C) 10930/2022& CM APPL.44354/2022 - - - Dated:- 18-1-2023 - JUSTICE PRATHIBA M. SINGH For the Petitioner Through: Mr. Manish Sharma and Mr. Ninad Dogra, Advocates (M:9810105226). For the Respondents Through: Mr. Ajay Digpaul, CGSC with Mr. Kamal Digpaul, Ms. Swati Kwatra, Advs. for UOI (M: 9811157265). Mr. Santosh Kumar Tripathi, Standing Counsel with Mr. Tapesh Raghav, Mr. Utkarsh Singh, Mr. Pradyuman Rao Advocates for GNCTD (M: 9818112250). Prathiba M. Singh, J. (Oral) 1. This hearing has been done through hybrid mode. 2. These are two writ petitions filed by the Petitioner- Premier Gun House, Delhi seeking reliefs in respect of its licenses to import arms as also for release of consignment and other reliefs. 3. The Petitioner is a registered entity engaged in import and trading of arms and ammunition. On 2n .....

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..... . However, the Petitioner learnt that DGFT had advised the custom authorities to not to clear any consignment of the Petitioner against import license No.015924-593 dated 25th September, 2020 till further orders. The show cause notice was replied to by the Petitioner vide a detailed reply on 08th March, 2021. 6. The Petitioner, thereafter, on 11th March, 2021 received an email from the DGFT asking it to surrender the import license which was issued to it which led to the filing of the present petition. The prayer in this petition are as under: A. Issue an appropriate Writ, Order, Directions especially in the nature of Mandamus thereby quashing Show Cause Notice bearing Ref No. F.NO.01/53/B/AM20/P-49/MC/1103 dated 25 February, 2021 issued by Dy. Director General of Foreign Trade under the Foreign Trade [Development and Regulation] Act, 1992and all consequential proceedings arising therefrom; AND B. Issue an appropriate Writ, Order, Directions especially in the nature of Mandamus thereby quashing the email dated 11.03.2021 received by the petitioner from DGFT and all consequential proceedings arising therefrom; AND C. Issue an appropriate Writ, Order, Directions es .....

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..... s to seek instructions in the matter, list on 6th April, 2021. In the meantime, no coercive action shall be taken against the Petitioner. The Petitioner may file its reply to the show-cause notice before the authority concerned, which shall be without prejudice to the rights and contentions of the Petitioner in the present writ petition. 8. On 6th April, 2021, after hearing ld. Counsel for the Petitioner and the Union of India, the following directions were issued: 4. Considering the nature of the matter, the authorities of the Respondents shall afford a hearing to the Petitioner and would take a decision on the prayer for clearance of the goods of the Petitioner, as well as on the show cause notice, within a period of two weeks, as the Petitioner is incurring huge demurrage charges. The issue in respect of interpretation of the actual user conditions would also be considered. The order shall be passed, by the authorities on or before 25th April, 2021. 9. In the meantime, the Petitioner also sought permission by way of CM 18002/2021 to get the 28 weapons which stood imported and lying in the customs, released. The said application was considered by the Court on .....

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..... 93 dated 25.09.2020 for import of 350 weapons has been granted by Respondent no. 2 for the purpose mentioned in the original application i.e. Trading (Stock Sale/Purchase) of firearms/weapons; AND C. In the interim, during the pendency of the present Petition, pass necessary orders and directions, thereby directing the Respondent no. 3 4 for not refusing to carry out inspection and release of import consignment; AND D. Grant any other relief as this Hon'ble Court may deem fit and proper in view of the facts and circumstances of the present case. 12. It is submitted by ld. Counsels for the parties that as of today, the position in W.P.(C) 10930/2022 is that the arms have been released as of September, 2022, pursuant to the order dated 30th August, 2022 passed by this Court which reads as under: In the meanwhile and without prejudice to the rights and contentions of respective parties, bearing in mind the fact that the principal dispute which the Delhi Police has referred to in its affidavit is the previous litigation which ensued inter partes, let the imported consignment be duly inspected and a further affidavit filed. This would also be in con .....

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..... rit Petition(C) no. 3521/2021 before the Hon ble High Court, Delhi. By the order dated 19/03/21 passed by Hon ble High Court, Delhi directed them to file its reply to Show Cause Notice dated 25.02.2021 before the Authority concerned. They have once again approached the Delhi HC vide W.P. 10930/2022 for clearance of additional consignments imported in March 2022 and held up at examination at Delhi (Air Cargo) Customs. In the meantime, firm has submitted an online application vide F.No. HQRXIMI AMFND00000252AM23 dated 06.05.2022 for Deletion or Amendment of actual user Condition from their import Authorization. Firm has stated that they have been granted Arms Dealership License in form VIII which is for Trading (Stock Sale). And at the time of filling the Application, they have chosen the purpose of import as Trading (stock Sale). Accordingly, the firm has requested for Amendment of purpose of imports under subject import Authorization from actual user condition to Trading (Stock Sale) by relaxing of Para 2.10 of FTP. Decision : The Committee went through the justification submitted by the applicant and discussed the matter at length, and carefully went through Orders .....

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..... d the Petitioner a hearing and pass a reasoned order in accordance with the Act and Rules. 18. On the second outstanding issue, in so far as the demurrage charges are concerned, the allegation of the Petitioner is that the Delhi police did not inspect the consignment despite the import having been made during the period of the validity of the license. This led to the Petitioner incurring substantial demurrage charges. 19. In any event, the Petitioner has already deposited the demurrage charges and has got the consignment released. The Petitioner can seek refund of the demurrage charges in terms of the Rule 88(5) and 88 (6) of the Arms Rules 2016 which read as under: (5) The dealer or manufacturer shall within seventy-two hours of the arrival of the firearms or ammunition in India- (a) arrange with the licensing authority of the port of entry to physically inspect the firearms or ammunition; and (b) on finalisation of the physical inspection, certify in writing to the licensing authority, who issued the import licence, that the imported firearm or ammunition corresponding with the import licence, have arrived in India. ( 6) Any delay in carrying out the ins .....

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