KAPTANS ENTERPRISES Vs. UNION OF INDIA

JUDGEMENT

(1.) The first petitioner "Kaptan's Enterprises" is a partnership firm of which the second petitioner is a partner. It carries on business in import and export of various raw materials and their distribution and sale in India. It has filed this writ petition seeking directions to the first two respondents, the Customs authorities in India, to permit the petitioner firm to import 8000 M.T. of "Stearin Fatty Acid" for the purchase of which it is said to have entered into a contract with the third respondent, an English company, on 7-10-1983. To understand the controversy between the parties it is neces- sary to set out certain relevant publications and notifications oSt the Government of India which set out the import policy of the Government at the relevant time.

(2.) The import of goods into India is governed by the provisions of the Imports & Exports (Control) Act, 1947. In terms of this statute, the Government, every financial year, announces its import policy (which is published in what is called the 'red book' for the year) and this is followed up by orders and notifications under the Act to flive effect to the said policy. The Government also issues notifications from time to time cancelling, varying or modifying the terms of earlier orders and notifications so as to suit tile country's re- auirements.

(3.) The Import Policy for 1983-84 was initially issued as a Public Notice (No. 10-ITdPN 83 dated 15-4-1983) by the Ministry of Compierce of the Government of India. The policy this year, as in other years, permitted certain articles to be imported by certain categories of importers under "Open General Licence" (OGL), that is to say, freely and without obtaining a specific import licence therefor. Appendix 10 of . the red book for 1983-84 sets out the list of articles which can -* be imported unded OGL by the categories of importers referred to therein. Item 1 of this list permits the import of raw materials, components and consumables (non-iron and steel items) other than those included in the Appendices 3,4,5,8,9 and 15" under OGL by actual industrial users (vide page 144 of the red book). Paragraph 20 of conditions subjoined to the above Appendix (page 151) explains :