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TMI Blog2023 (3) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... f Foreign Trade (DGFT), Ministry of Trade and Commerce - Respondent No.2, Joint Commissioner of Delhi Police- Respondent No.3, M/s Celebi Delhi Cargo Terminal Management India Pvt. Ltd. - Respondent No.4 and the Office of the Commissioner of Customs- Respondent No.5. 3. The Petitioner is a company engaged in the manufacture of various restricted items including firearms, ammunition and parts thereof. 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. The details of the said licences are as under: 4. In terms of the licences dated 24th December, 2021 and 18th April, S. No. Date of Licence Purpose 1 24th December, 2021 Demonstration by Indian Army and own R&D. 2 18th April, 2022 For indigenising the shotgun production in India. 3 23rd November, 2021 Ammunition components for assembly and manufacturing into finished cartridges. 4 4th May, 2022 Fitment into the revolvers firearm system. 5 10th June, 2022 For fitment into the pistol system with prototypes. 6 10th August, 2022 Components for fitment into the revolvers firearm system. 7 13th September, 2022 Actual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Customs may extend the period of storage for a further period not exceeding thirty days at a time." 4. Accordingly, the Petitioner is permitted to make a representation to the Customs authorities for moving the cargo to a recognized warehouse. The same shall be considered and if the documents are found in order, the same shall be processed and decided within 3 days after moving of the representation. 5. List on 6th February, 2023. 6. Interim order already granted shall operate till the next date." 6. Later, there was also a dispute which was raised as to whether there was any recognized warehouse which could store 'full arms' or not. However, today the Court has been informed that the said issue has now been sorted out between the Petitioner and the Customs Department and it is submitted by ld. Counsels that the Petitioner is in the process of shifting the goods to the recognized warehouse as required by the Customs authorities. Therefore, the questions that now remain to be considered in this writ petition are: ● Whether the already imported goods can be released to the Petitioner? ● Whether the goods which are yet to be imported under the remaining five li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Arms Act and Rules to get the import licence. The Petitioner having not done so, the imports have been rightly stopped by the Customs and Delhi Police. 11. On the last date of hearing, i.e., 20th February, 2023, the Court had directed officials from DGFT, Office of Commissioner of Customs, and Ms. Urmila Rawat, Deputy Secretary, DDP to appear before the Court. Today, in compliance of the said order, Ms. Urmila Rawat, and Mr. Moin Afaque, Deputy DGFT, have appeared before the Court. 12. A specific query from the Court as to whether the stand of the Union of India, as submitted by the ld. CGSC before the Court today, is reflected in the SOP or not. Both the officials submit that there is no reference given to the Arms Act or the Rules in the SOP. The DGFT's stand, however, is that since the MHA requires a licence to be issued under 'Form X', the importer was well aware that he had to make the necessary application under 'Form X'. On behalf of the DDP, it is now submitted that since the SOP did not deal with application to be made under 'Form X', in view of the prevalent situation, a recent circular has been issued on 8th February, 2023 by the DDP wherein it has been clarified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within the time specified in Rule 88(6). That authority has thus not caused any delay so as to warrant any directions being framed against it and as claimed in the writ petition. More fundamentally and bearing in mind the contentious questions which came to be raised, the facts of the present case would not warrant the grant of relief (d) as claimed in the writ petition." 14. It has further been brought to the attention of the Court that this judgment is the subject matter of LPA No. 695/2022 titled The Ministry of Home Affairs & Anr. v. Syndicate Innovations International Limited & Ors. and connected matters. In the said matter, vide order dated 6th February, 2023 the importers were permitted to take goods on supratnama but were directed to not to dispose of the said items. The said matters are currently pending before the ld. Division Bench and are stated to be next listed on 10th May, 2023. 15. Heard ld. Counsel for the parties and perused the record. 16. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate governments and Category 2: Items for the purposes of design & development, export, repairs, fitment into a system, participation in Tenders/Exhibition, Testing & Evaluation. 3. EXEMPTION FROM THE APPLICATIONS OF RULES Agencies/Organizations mentioned in DGFT's Amendment Order, 2017 dated 25.07.2017 (F. No.01/93/180/16/AM-16/PC-2(B)), as amended from time to time, shall be exempted from seeking import authorization of defence items. 4. MODE OF APPLICATION The Indian Manufacturers are required to file applications in ANF1, ANF2M along with the necessary documents [including Appendix 2P (ANF2K(i), Annexure 2(i), (ii) & (iii)) for imports from USA. The certificate notified in such documents would continue to be issued by DGFT as agreed under Indo US MOU signed by DGFT]. They would also enclose the copy of Purchase Order / End User Certificate counter-signed by the end user. The applications alongwith the scanned copy of EUC/purchase order may be sent through email to [email protected] till an on-line system is made available for the purpose. 5. DOCUMENTS REQUIRED FOR PROCESSING OF THE APPLICATIONS (i) A copy of Purchase Order/Supply order/End User Certificate (EUC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commercial sale is commenced. 21. 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. 22. Thus, insofar as the said two consignments are concerned, the Petitioner shall file the relevant application along with necessary documents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 28.05.2018. 2. MHA has issued clarification to DDP in respect of applicability of Section 45 (b)(i) of the Arms Act, 1959 and rule 57(4) of the Arms Rules 2016 w.r.t import of arms & ammunition and conveyed that as per the extant provisions of the Arms Act & Rules, the following licences/ permissions are required by a manufacturing and/or proof test arms and ammunition: i. Licence in Form VII to manufacture and/or proof-test ii. Licence in Form I to acquire/possess machinery for manufacturing and/or proof-test. iii. Permission of MHA to commence commercial production and proof-test arms and/or ammunition in terms of rule 54 of the Arms Rules,2016. iv. Licence in Form X of the Arms Rules, 2016 for all imports of arms and ammunition including parts of firearms, and ammunition where a manufacturer is seeking to import. This is also required by a dealer holding a Form VIII licence if he intends to import. 3. Exemption is allowed to such companies/firms under Section 45(b)(i) of the Arms Act, 1959 where MHA has given its approval. Moreover, approval under rule 57(4) is also accorded by MHA. 4. In view of the above for import licence in Form-X application in Form A-10 m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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