M J EXPORTS LIMITED Vs. CEGAT BOMBAY

JUDGEMENT

(1.) Import Trade Control was introduced in India as a war-time measure in the early stages of the Second World War, initially by a notification issued in exercise of the powers conferred under the Defence of India Rules. The primary object of notification was to conserve foreign tne exchange resources and restrict physical orts so as to reduce the pressure on the 1imited available shipping space. To start with, the import of only 68 commodities, mainly consumer items, were brought under control. Subsequently, as foreign exchange resources came under pressure, import control was extended to cover other commodities as well.

(2.) Soon after the second world war came to an end, the control of imports and exports was statutorily provided for. The Imports and Exports (Control) Act, 1947 (18 of 1947) came into force with efffect from 25th March, 1947, initially for a period of three years and was extended from time to time. The Act was substantially amended by the Imports and Exports (Control) Amendment Act, 1976. Section 3 of the Act is relevant for our present purposes. It reads:

(3.) Several notifications were issued under S.3 of the above Act from time to time setting out the lists of controlled items. At the relevant time with which we are concerned, the notification governing Imports was the Imports (Control) Order, 1955 as amended from time to time and the one governing exports was the Exports (Control) Order, 1988 which came into force on 30th March, 1988. The broad scheme of the Imports Control Order is that the items of goods set out in Schedule 1 to the said order cannot be imported except under a licence or customs clearance permit issued in terms of Schedules 11, 111 and V to the order. Clause 11 (4) of the Order, however, also envisages the issue of an Open General Licence or Special General Licence by the Central Government permitting the import of such goods by such persons and subject to such conditions as may be specified. Clause 3 of the Exports Control Order likewise imposes restrictions on exports from the country in the following terms