NARENDRA UDESHI Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition was originally filed on 22nd February, 2002 challenging the circular dated 3rd September, 2001 issued by the Director General of Foreign Trade (D. G. F. T.) directing the licensing authorities not to issue any duty free advance licence for import of natural rubber until further orders. The petitioner had also challenged the inaction on the part of the State Trading Corporation of India Ltd. (S. T. C.) in refusing to import natural rubber under the advance licence granted to the petitioner on 8-10-2001. During the pendency of this writ petition, show cause notice dated 29-4-2002 was issued for cancellation of advance licence granted to the petitioner on 8th October, 2001. A public notice dated 20th May, 2002 was also issued by D. G. F. T. to amend the hand book of procedures for 2002-2007 so as to prohibit duty free import of natural rubber. The petitioner was allowed to amend the petition so as to challenge the validity of the aforesaid show cause notice dated 29th April, 2002 and also challenge the validity of the public notice dated 20th May, 2002.

(2.) THE short question that arises for our consideration in this petition is when the statutory provisions of the import policy specifically permits import of natural rubber duty free under an advance licence, is it open to the implementing agency, namely the D. G. F. T. to prohibit/ban import of natural rubber under an advance licence?

(3.) BEFORE dealing with the facts of the case, it is necessary to set out the relevant policy provisions.