SECRETRY, CENTRAL INSECTICIDE BOARD Vs. M. CHANDRASEKHAR

JUDGEMENT

(1.) The question arising in the above appeals is whether for the import of Ethylene Di-chloride [EDC] for the purpose of manufacturing Poly Vinyl Chloride [PVC], an import permit is required, from the Central Insecticides Board [CIB] and Registration Committee [RC] constituted under the Insecticides Act, 1968 [for brevity "Insecticides Act"]. The appeals have been filed by the Deputy Commissioner of Customs as also the Secretary, CIB; for whom arguments were addressed by Sri.K.M.Natarajan, 1stAdditional Solicitor General. The respondent-writ petitioner/importer was represented by learned Senior Counsel Sri.Joseph Kodianthara.

(2.) The respondent is engaged in the manufacture of PVC, for which process he imports EDC used as a raw material in the production. The import had been carried out for the last very many years and clearance is effected from the Port of entry by giving an undertaking that the goods would be used only for the manufacture of PVC, a non-insecticidal purpose exempted under Section 38 of the Insecticides Act. The undertaking would be cancelled only after the importer produces an end-use certificate issued by the Excise authorities and the Sales Tax authorities (now the Goods and Services Tax authorities).

(3.) The cause of action for the writ petition was a communication issued at Exhibit P11 requiring an import permit to be applied for and obtained from the CIB and RC. The requirement as evidenced from the communication at Exhibit P11 follows the decision of the RC, constituted under the Insecticides Act, which is produced at Exhibit P10. The importer contended that the import of insecticides for non-insecticidal purposes being exempted under Section 38 of the Insecticides Act, there could not be any insistence for an import permit as decided by the RC. The powers of the RC as conferred by the Act and Rules, does not extend to insistence of a permit under the Insecticides Act for a purpose which is clearly exempted from the provisions of the said Act. Before the learned Single Judge, the appellants contended that EDC is included as an insecticide under the Schedule to the Act and, hence, the provisions of the Act would apply to the import. It was also contended that a notification was issued by the Central Government on 01.01.2015 under Section 3 of the Foreign Trade (Development and Regulation) Act, 1992 [for brevity "Foreign Trade Act"]; in terms of which import permit is insisted from the RC for import of insecticides even for non-insecticidal purposes. Reliance was also placed on the decision in Union of India & Others v. Maliakkal Industrial Enterprises [ILR 2014 (3) Ker. 387].