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Delhi High Court - Orders

Vi Exports India Private Limited vs Union Of India, Ministry Of Commerce And ... on 4 September, 2023

Author: Subramonium Prasad

Bench: Subramonium Prasad

                                    $~86
                                    *           IN THE HIGH COURT OF DELHI AT NEW DELHI
                                    +           W.P.(C) 11649/2023
                                                VI EXPORTS INDIA PRIVATE LIMITED                                                      ..... Petitioner
                                                                                      Through:                 Mr. Sarthak Sachdeva, Advocate

                                                                                      versus

                                                UNION OF INDIA, MINISTRY OF COMMERCE AND
                                                INDUSTRY, DEPARTMENT OF COMMERCE THROUGH
                                                DIRECTOR GENERAL, DIRECTORATE GENERAL OF
                                                FOREIGN TRADE                           ..... Respondent
                                                             Through: Mr. Vineet Malhotra, Mr. Abhinav
                                                                      Dubey, Advocates for DGFT
                                                                      Mr. Asheesh Jain, CGSC with Mr.
                                                                      Gaurav Kumar, Advocate and Mr.
                                                                      Rahul Kumar Sharma, GP for UoI

                                                CORAM:
                                                HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD
                                                         ORDER

% 04.09.2023 CM APPL. 45470/2023 (Exemption) Allowed, subject to all just exceptions.

W.P.(C) 11649/2023 & CM APPL. 45471/2023

1. The Petitioner has approached this Court for a direction to the Respondent to permit the Petitioner to export 11,000 Metric Tonnes (MT) of non-basmati white rice for which shipping bills had been filed by the Petitioner and the rotation number of the vessel had also been generated by the Petitioner.

2. The facts of the case reveals that the Petitioner received an order from W.P.(C) 11649/2023 Page 1 of 4 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 16/09/2023 at 16:14:09 its overseas buyer M/s Indi Sino Trade Pte Ltd for sale of 40,000 MT of rice which was to be exported from Kandla Port in Gujarat.

3. It is stated by learned Counsel for the Petitioner that the Petitioner purchased 28,000 MT of rice from various venders and started the process of packaging and transportation of rice from Kandla Port. It is stated that between 10.07.2023 and 12.07.2023, the Petitioner filed 28 shipping bills of 1000 MT each at the Customs Portal for the export of the entire quantity of 28,000 MT of rice. It is further stated that on 18.07.2023, the Petitioner was allotted the Port VCN Number and Customs Rotation Number for export of 28,000 MT of rice.

4. It is stated that on 20.07.2023, a notification was issued by the Respondent prohibiting export of non-basmati white rice. Vide Notification No.20/2023 issued by the Directorate General of Foreign Trade amending the foreign trade of non-basmati rice under HS Code 1006 30 90. The relevant clauses of the said notification read as under:-

"S.O.(E) The Central Government, in exercise of powers conferred by Section 3 read with section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992), as amended, read with Para 1.02 and 2.01 of the Foreign Trade Policy, 2023 hereby amends the Export Policy of Non-Basmati rice against ITC (HS) code 1006 30 90 of Chapter 10 of Schedule 2 of the ITC (HS) Export Policy, as under:-
ITC HS Codes Description Export Policy Revised Export Policy 1006 30 90 Non-basmati Free Prohibited white rice (Semi-milled or wholly milled rice, W.P.(C) 11649/2023 Page 2 of 4 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 16/09/2023 at 16:14:09 whether or not polished or glazed: Other)
2. The Notification will come into immediate effect. The provisions as under Pam 1.05 of the Foreign Trade Policy, 2023 regarding transitional arrangement shall not be applicable under this Notification for export of Non-basmati rice. Consignments of Non-basmati rice will be allowed to be exported under following conditions:
i. where loading of Non-basmati rice on the ship has commenced before this Notification;
ii. where the shipping bill is filed and vessels have already berthed or arrived and anchored in Indian ports and their rotation number has been allocated before this Notification; The approval of loading in such vessels will be issued only after confirmation by the concerned Port Authorities regarding anchoring/berthing of the ship for loading of Non- basmati rice prior to the Notification;
iii. where Non-basmati rice consignment has been handed over to the Customs before this Notification and is registered in their system where Non-basmati rice consignment has entered the Customs Station for exportation before this Notification and is registered in the electronic systems of the concerned Custodian of the Customs Station with verifiable evidence of date and time stamping of these commodities having entered the Customs Station prior to 20.07.2023. The period of export shall be upto 31.08.2023.
iv. Export will be allowed on the basis of permission granted by the Government of India to other countries W.P.(C) 11649/2023 Page 3 of 4 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 16/09/2023 at 16:14:09 to meet their food security needs and based on the request of their Government." (emphasis supplied)

5. It is stated that the Petitioner had already got the shipping bills and the rotation numbers, but the Petitioner could not get the approval for such loading for the reason that the notification dated 20.07.2023 was released at about 9:50 PM, before the approval was granted, leaving the Petitioner completely remediless.

6. Learned Counsel for the Petitioner relies on a Judgment dated 12.10.2022 passed by the High Court of Andhra Pradesh at Amaravathi in W.P.(C) Nos. 32049/2022, 33016/2022, 33156/2022, in a matter pertaining to export of broken rice wherein identical notification had been issued and the High Court of Andhra Pradesh permitted export of the broken rice primarily on the ground that persons who were unaware of the change in the policy cannot be penalized.

7. Issue notice.

8. Mr. Asheesh Jain, learned CGSC for the Respondent, accepts notice. He seeks some time to get instructions in the matter.

9. List on 22.09.2023.

SUBRAMONIUM PRASAD, J SEPTEMBER 4, 2023 hsk W.P.(C) 11649/2023 Page 4 of 4 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 16/09/2023 at 16:14:09