GUJARAT AMBUJA EXPORTS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The challenge in this batch of writ petitions by manufacturers of cotton yarn is to a ban on the export of cotton yarn with effect from 1st December 2010, first brought about by a Press Release of the Ministry of Textiles (MoT) of that date and later by a Notification dated 22nd December 2010 issued by the Department of Commerce ('DoC') in the Ministry of Commerce and Industries ('MoCI'), Government of India. The Petitioners challenge the validity of the aforementioned Press Release and Notification as being ultra vires of the Foreign Trade (Development & Regulation) Act, 1992 ['FTDR Act'] and violative of the fundamental rights under Articles 14 and 19(1)(g) of the Constitution of India.

(2.) At the outset, it must be noted that the facts in five of the six writ petitions are more or less similar. For the sake of convenience, the facts in the first petition i.e., W.P. (C) 8406 of 2010 by Gujarat Ambuja Exports Ltd. ('GAEL') are set out in detail. The facts in W.P. (C) 8548 of 2010 by Krishna Knitwear Technology Ltd. ('KKTL') are somewhat different as it is a 100% export-oriented unit ('EOU'). The facts concerning KKTL will be discussed separately. Relevant provisions of the Foreign Trade Policy 2009-2014

(3.) The Foreign Trade Policy ('FTP') for the period 27th August 2009 to 31st March 2014 was published in the Official Gazette on 27th August 2009. The FTP states that by 2014 India's export of goods and services is expected to be doubled. India's share in the global trade is expected to be doubled by 2020. Prior to the ban on their export, cotton yarn and raw cotton were freely exportable commodities. Para 2.1 of the FTP reads as under: "2.1 Exports and Imports shall be free, except where regulated by FTP or any other law in force. The item wise export and import policy shall be, as specified in ITC (HS) notified by DGFT, as amended from time to time."