NEW DELHI (Commodities control) Supreme Court’s order regarding restrictive import of pulses may bring huge losses and even penalty and action against some importers who had challenged DGFT’s notification in the apex court. The court upheld the notification and dismissed petitions filed against it. It also vacated stay orders granted by different high courts.
The apex court found the notification legally valid. The court has said that DGFT or union government has power to impose quantitative restrictions on imports and exports under section 9A of Foreign Trade (Development and Regulation) Act (FTDRA). Therefore, notification issued in 2018 regarding restrictive import of pulses is valid. The apex court vacated all the stay orders granted by different high courts. The importers secured stay orders while challenging the notification in high courts.
SC said that pulses imported on the basis of interim orders or stay orders will be disqualified under section 9A of FTDRA. These consignments may be disposed under the provisions of Customs Act, 1962. The importers succeeded to get clearance from ports, may face action also under relevant provisions.
According to the order, customs department can clear these import under Customs Act, 1962 after imposing penalty up to five times of value of the consignment. Importers may also get option to re-export the goods. But they have to seek potential buyers in abroad. It is to be noted that DGFT had imposed quantitative restrictions under section 9A of FTDRA in the interest of country’s pulses producing farmers. Few importers challenged the notification in Madras High Court and secured stay orders. Few importers imported pulses on the basis of stay order despite DGFT’s notification. Importers got stay orders from high courts of Gujarat, Rajasthan, Maharashtra and Madhya Pradesh also on the same ground.
(By Commoditiescontrol Bureau)