LIBERTY OIL MILLS Vs. UNION OF INDIA

JUDGEMENT

(1.) A few months ago, orthodox Hindu sentiment was outraged and general public feeling was roused by the discovery that beef tallow imported from abroad was either being sold as vanaspati or used in its manufacture by certain unscrupulous persons. There was a furore in the country. There was public agitation. Questions were asked in Parliament. Outside the House, Press and Politician made capital of it. There were demands that severe action be taken against those responsible. Assurances were given in Parliament. Bureaucracy went into action. It was discovered that though the import of beef tallow, like other animal tallow, had been canalised through the State Trading Corporation with effect from 5/06/1981, there had been considerable import of beef tallow outside the channel of the State Trading Corporation even subsequent to 5/06/1981, on the ostensible pretext that licences had been issued and firm contracts had already been entered into before that date. It was also discovered that beef tallow had been allowed to be imported even by non-actual user' under letters of authority given by licensees who had obtained import licences against the entitlement based on the value of their exports. As a result of these discoveries it was thought that drastic action was called for. So, a notification was issued under Section 3 (3) of the Imports and Exports Control Act totally banning the import of beef, buffalo and pig tallow into India with effect from 24/08/1983. And, on 7th, 9th and 10th November and l7th and 21st December, five circulars, styled 'abeyance circulars' and marked 'secret' were issued by the Deputy Chief Controller of Imports and Exports, in respect of as many as 1920 concerns (business houses), directing licensing authorities to keep in 'abeyance' for a period of six months from the respective dates of the circulars any application received from any of them for the grant of Import Licence or Customs Clearance Permits and allotment of imported goods through agencies like the State Trading Corporation of India Limited, the Minerals and Metals Trading Corporation of India Ltd. or any other similar agency. It may be useful to extract one of these 'abeyance' circulars, all of which are in substantially similar terms. The abeyance circular dated 9/11/1983 which 'lists' - we will not use the word 'black-lists' - as many as 61 concerns including Liberty Oil Mills (P.) Ltd. is as follows :

(2.) THESE instructions may be kept secret and if any of the above mentioned firms make any enquiry about the position of their application(s), they may simply be informed that the matter is under consideration.

(3.) THE receipt of this circular may please be acknowledge in the standard pro forma.