UNION OF INDIA Vs. UNIK TRADERS

JUDGEMENT

(1.) These Writ Appeals have been filed by the Union of India, Director General of Foreign Trade and the Commissioner ofCustoms, against the Common Order passed by the learned Single Judge allowing the Writ Petitions filed by the respondents and thereby declaring the Notification dtd. 4/6/2008 issued by the Director General of Foreign Trade as illegal, arbitrary and unconstitutional.

(2.) The Writ Petitioners are importers of betel nuts and spices. They were importing the betel nuts from various countries. Considering the local demand for the betel nuts, the import was made free and there were no restrictions except the customs duty to be paid on the imported betel nuts.

(3.) The grievance of the Writ Petitioners was that through the impugned Notification issued by the Director General of Foreign Trade, the importers were directed to import the betel nuts provided that the c.i.f. value (minimum import price) of the betel nuts was fixed at Rs.35.00 per kg. According to the petitioners, such fixation of price by issuing a Notification under Sec. 5 of the Foreign Trade (Development and Regulation) Act, 1992 (hereinafter referred to as 'the Foreign Trade Act') by the Director General of Foreign Trade (DGFT) is arbitrary and unconstitutional and beyond the powers of the DGFT.