TMI Blog1993 (6) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... Customs (Preventive), West Bengal, Calcutta had been pleased to allow that petitioner to carry sawn wood processed in different shapes and sizes from India to Nepal through Panitanki L.C. station after observing necessary formalities. According to the petitioner, relying upon this assurance he entered into an agreement with a purchaser in Nepal for supply of 2000 cubic metres of sawn wood planks in sizes of 6 inches x 4 inches x 6 ft. The agreement provides that failure to supply the planks within four months from the date of the agreement would entail penal consequences. The petitioner obtained the sawn wood planks and sent them on trucks to Nepal through Panitanki L.C. On 30th March, 1993 the trucks were stopped at Panitanki at the instan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded by the petitioner that the Indo-Nepal Treaties of Trade, Transit, 1991 provided that the Government of India and Nepal would, on reciprocal basis, exempt from basic customs duties as well as quantitative restrictions, the import of such primary products as may be mutually agreed upon from each other. The protocol to the treaty includes timber as a primary product eligible for preferential treatment. It is contended that the treaty was binding on the respondent-authorities as government servants and they could not act in contravention thereof by refusing to allow the export of timber. 6.The respondents have contended that under Chapter XVI, Part I of the Export and Import Policy (1-4-92 - 31-3-1997) timber was included in the negative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 991 whereas the Export Policy was formulated in 1992, and that it was not argued by the petitioner that the treaty overrode local laws. 9.In my view, the petitioner is entitled to succeed in this application on the basis of his first submission. 10.Chapter XVI, Part I of the Export and Import Policy contains 7 categories of items which are prohibited and may not be exported at all. Item 7 of the list of prohibited items reads as follows : Wood and wood products in the form of logs, timber, stumps,"7. roots, barks, chips, powder, flakes, dust, pulp and charcoal." 11.There is no specific mention of planks in the description of the items. Chapter XVI, Part V of the Policy provides for items which may be exported without a licence but s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Import Policy to mean "manufactured". 15.The definition equates manufacture with only those processes which result in manufacture. In other words, those processes which bring into being a new commodity would be included within the definition of manufacture. Therefore, manufacture cannot be equated with all processes. 16.This position has been recognised by the Supreme Court in the case of Union of India v. Delhi Cloth and General Mills, 1977 (1) E.L.T. (J 199) (S.C.) = AIR 1963 S.C. 791 : "According to the learned Counsel `manufacture' is complete as soon as by the application of one or more processes, the raw material undergoes some change. To say this is to equate `processing' to `manufacture' and for this we can find no warrant i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hapter XVI, Part V, Item 44 of the Export and Import Policy, (from 1st April, 1992 to 31st March, 1997) and is an exportable item subject to such terms and conditions as may be specified in this behalf in the Hand-book of Procedures. Having held this it is not necessary to consider the other submissions of the petitioner. 21.The writ application therefore succeeds. The respondents are directed to allow the petitioner to export the sawn wood planks which are the subject-matter of this petition subject to the petitioner complying with the terms and conditions as may be applicable under the Export and Import Policy (1992-1997). 22.There will be no order as to costs. Let xerox copies of this order be made available to the learned Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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