M/S.AYESHA EXPORTS Vs. UNION OF INDIA

JUDGEMENT

(1.) THE subject matter of challenge in this writ petition, which has been referred by a single Judge of this Court to a Division Bench of this Court, challenges Notification No. 25(RE -2007)/2004 -2009 dated 29th August, 2007 issued by the Government of India, Ministry of Commerce and Industry, Department of Commerce, New Delhi, in exercise of power under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with paragraph 2.1 of the Foreign Trade Policy -2004 -2009, whereby and under High Court Of Judicature At Patna Versus Ram Kripal Prasad Schedule -I (Imports) of the ITC (HS) Classifications of Export and Import items has been amended, as a result importation of betel nuts has been allowed only through Mangalore Port and through nowhere else. This has prevented importation of betel nuts across the land border of India and Nepal.

(2.) THE writ petitioner is an Importer of betel nuts from Nepal. He has contended that the said amendment infringes the treaty in between India and Nepal and at the same time unjustly supports south Indian growers of betel nuts at the cost of betel nuts growers of Nepal. On 18th February, 2008 while the writ petition was referred to Division Bench, the learned single Judge while dealing with the writ petition passed an interim order staying the amendment, which interim order is continuing.

(3.) UNION of India has filed several counter affidavits to justify the stand taken by it. It is the contention of Union of India that Nepal though grows betel nuts, it does not grow enough betel nuts for the needs of its citizens, which compels Nepal to import betel nuts from South Asian countries. It has been stated that there is no clinical or physical difference in between betel nuts grown in Nepal and those grown in other South Asian countries. It has been stated that the size of betel nuts grown in other East Asian countries is slightly larger than betel nuts grown in Nepal. It has been stated that betel nuts in excess quantity are being imported in Nepal for the purpose of smuggling the same to India. It has been stated that Indo -Nepal border is porous, through which betel nuts imported from other South Asian countries are smuggled in lots into India. It has been stated that by reason of such smuggling the South India betel nuts growers are facing financial hardship. It has been stated that in order to stop smuggling of betel nuts of other South Asian countries into India through Nepal the measure complained of has been taken.