HARESH HEMANDAS MELWANI Vs. UNION OF INDIA

JUDGEMENT

(1.) By this petition filed under Article 226 of the Constitution of India, the petitioner is challenging the legality of the order dated October 19, 1978 passed by the Joint Chief Controller of Imports and Exports in exercise of the appellate jurisdiction, and the order passed by the Chief Controller of Imports and Exports in revisional jurisdiction and communicated to the petitioner by letter dated March 30, 1979.

(2.) The petitioner is carrying on business in the firm name and style of M/s. Hassanand Hemandas & Co., and the firm is an 'established importer' and carries on business as wholesalers and retailers in arms and ammunition. The Import Trade Control Policy for the period April 1977 to March 1978 was announced by the Union of India and it provides for policy for, 'established importers.' The detailed import policy for established importers is given in Section IV of the Import Trade Control Policy Rules. It inter alia provides that the quota licence is given to an established importer as a percentage of the value of his past imports, as appearing in the quota certificate in accordance with the import policy in force. Item 93.01/07 is about 'arms and ammunitions; parts thereof', and sets out that for arms and ammunition 5% would be the quota percentage. In other words, an established importer of arms and ammunition is entitled to a quota licence of the value computed at 5% of the sum mentioned in the quota certificate held by such established importer. The petitioner firm holds the quota licence certificate bearing No. 114921, dated January 17, 1957 for the sum of Rs. 3,64,393 in respect of cartridge cases filled and empty. The firm also holds a quota certificate licence bearing No. 888149, dated December 21, 1964 for the sum of Rs. 1,93,454 in respect of arms and ammunition. On the basis of the quota certificate, the firm was entitled to a quota licence of the value of Rs. 18,129 and Rs. 9,672 respectively.

(3.) As required by the Policy Book, the petitioner's firm applied on September 5, 1977 for quota licence based on the entitlement for the quota licence in respect of both the certificates. The Joint Chief Controller of Imports and Exports by order dated March 6, 1978 granted the licence, but after deducting the amount of 25% from the entitlement of the firm in respect of both the certificates. The firm carried an appeal before the Joint Chief Controller of Imports and Exports in respect of both the certificates and the appeals were dismissed by an order dated October 19, 1978. The only ground given for rejection of the appeal was that there is no provision for established imports in the AM-79. Policy Book and reliance was placed on para 199 of Policy Book of AM-79. The revisional authority has confirmed the order by giving an additional reason that arms and ammunition is canalised through S.T.C. vide S. No. 42 of Appendix 8 to the April/March 1979 Import Policy Book.