FAKIRCHAND M SHAH Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner is carrying business as a wholesaler and retailer in engines and parts thereof in the firm name and style of M/s. Honesty Trading Corporation as the sole proprietor. The petitioner is an 'established importer', within the meaning of Imports and Exports Control Act, 1947 and Imports (Control) Order, 1955. The petitioner, as an established importer, was granted quota certificated by the Government of India and on the strength of the same, the petitioner secured from time to time import licences and quota certificates enabling him to import into Indian various goods in accordance with the policy laid down by the Government. The petitioner was holding eleven quota certificates of the aggregate value of Rs. 8,38,451/- in the year 1977. The quota certificates were for import of items covered under Serial Nos. 293, 295 and 297 of Part IV, Section IV of Import Trade Control Policy for the year April 1976 - March, 1977. The subject under these three items was 'Motor Vehicle Parts'.

(2.) The Import Trade Control Policy for the period commencing from April 1977 to March 1978 grouped items of motor vehicle parts under the heading 'Chassis fitted with engines, bodies (including cabs) and parts and accessories of the motor vehicles falling within Heading Nos. 87.01, 87.02 or 87.03'. The various items under this heading were given Serial No. 87.04/06 under the I.T.C. of April 1977 and it reads as under : ---------------------------------------------------------------- -------- RITC Description Import Remarks No. Policy ---------------------------------------------------------------- -------- (1) (2) (3) (4) ---------------------------------------------------------------- -------- 87.04/06 Chassis fitted with engines, bodies (including cabs) and parts and accessories of the motor vehicles falling within Heading Nos. 87.01, 87.02 or 87.03. (1) Motor Vehicle 10% Detailed policy for Parts. these items is given in Appendix 26. (2) Spare parts for crawler/ 50% (1) Spare parts of Agricultural tractors crawler tractors and for tractor drawn falling under agricultural implements Heading No. (Sl. No. 74(iii)/V of Old 87.01 will be ITC Schedule). permitted, for import against quota licences for Heading No. 87.04/06(2). (2) Import of items mentioned in Appendix 4-D, Part I will be permitted up to the face value limits indicated against them. (3) Licences will not be valid for import of spare parts of crawlers and agricultural tractors and for tractor drawn agricultural implements mentioned in Appendix 4-D, Part II. (4) Import of banned types of ball, roller tapered, roller and needle roller bearings, bushes, cages, needle roller assemblies mentioned in Appendix 14 and rollers/needle rollers mentioned in remarks column against Heading 84.62(5) will not be allowed as spares or as CKD parts. (5) Import of any types of agricultural steel disc will not be permitted. (6) Parts of Hydraulic Lifts which form an in integral built up mechanism of tractors will be classified as spare parts of the tractors. (7) Quota licences will not also be valid for the import of items mentioned in List I of Appendix 26. Items mentioned in List II of Appendix 26 will be allowed for import only to parts interchangeable with motor vehicle parts falling under Heading 87.04/06 (Sl. No. 293, 295 and 297/IV of old I.T.C. Schedule) which are not specified in List 'D' of Appendix 4 in respect of which the policy indicated therein will apply. ---------------------------------------------------------------- --------

(3.) On September 24, 1977, the petitioner made an application to the Joint Chief Controller of Imports and Exports, Licensing Section, Bombay, for grant of licence for import of spare parts for Crawler/Agricultural tractors and for tractor drawn agricultural implements under Item No. 87.04/06(2) of Import Trade Control Policy of April 1977 to March 1978. The application was rejected by communication dated March 23, 1978 on the ground that the petitioner has failed to produce quota certificate for revised I.T.C. No. 87.04/06(2). The petitioner carried an appeal before the Controller of Imports and Exports, New Delhi, and the appeal ended in dismissal by communication dated October 19, 1978. The two reasons given for rejection of the appeal are as follows : (1) the petitioner has failed to furnish quota certificates for items supplied for, and the quota certificates furnished were for different items than that of the items supplied for; and (2) there is no provision for established importers during A-M-79 period. The petitioner preferred revision application against this order before the Ministry of Commerce, Civil Supplies and Co-operation, but by communication dated February 21, 1979, the petitioner was informed that the decision already communicated by the Joint Chief Controller of Imports and Exports, Bombay cannot be revised. The petitioner has thereafter approached this Court by filing this petition under Article 226 of the Constitution of India.