Document Fragment View

Matching Fragments

WP(MD)No.24396 of 2019 is filed for the direction forbearing the first respondent from interfering with respect to import of Ilmenite from other countries by the petitioner in any manner including discharge, transportation, storage and usage thereof.

2.The petitioner is a manufacturer of Titanium Dioxide and other allied products. The basic material for the manufacture of Titanium Dioxide is ilmenite, which is a major mineral falling within the control and domain of the Central Government under the Mines and Minerals (Development and Regulation) Act, 1957 [hereinafter referred to as 'MMDR Act']. It is stated that the said mineral is a freely importable mineral as per the Union of India's Foreign Trade Policy. Admittedly, it is not mined in India. It has been purchased from other countries. For the import of the same, the documents namely commercial invoice, bill of lading, bill of entry have to be produced to the customs authorities as notified under the Foreign Trade (Development and Regulation) Act, 1992. The petitioner has http://www.judis.nic.in W.P(MD)Nos.24396 & 22615 of 2019 been importing the minerals into the Country and used it for the purpose of 'home consumption'.

3.The petitioner had imported the ilmenite from Norway and shipped through the material mined by M/s.Titania AS of Joessingfjord, Norway. The petitioner had availed the services of M/s.Raja Agencies who is the petitioner in WP(MD)No.22615 of 2019 as his Customs House Agent. The purpose of engaging agent was to clear the import of ilmenite from the ship and clear it through customs authority and transport the same to the factory premises. The port of discharge was V.O.Chidambaranar Port Trust, Tuticorin.

4.The Customs House Agent sent the documents mentioned above and they were checked and verified by the customs department. After the payment of the customs duty, customs department also issued pass to remove the same out of the port. While so, it was understood that the first respondent has written a letter to the traffic manager of the V.O.C.Port trust stating that the berthing of the vessel should not be allowed and passed an order on 22.10.2019. Challenging the same, WP(MD)No.22615 of http://www.judis.nic.in W.P(MD)Nos.24396 & 22615 of 2019 2019 is filed. It is stated that prior to this, the District Collector, Tirunelveli had written a letter on 18.07.2019 to the District Collector, Tuticorin to stop the import, because of which, the petitioner was kept in dark, and the Customs House Agent was also not even put on notice. Though the petitioner has been importing ilmenite from 2017, for the first time, there has been such objection for import. The first respondent had taken a stand that the Rules framed by the State of Tamil Nadu by exercising its power under the MMDR Act will be applicable to imports also. Though only the export of beach sand minerals is restricted by the Director General of Foreign Trade (DGFT), for the import of ilmenite which is major mineral, there is no restriction. The respondents 3 to 6 have never so far issued any notification to control the import of a substance, which is classified as an atomic mineral. The respondents had applied the MMDR Act and Rules for the import made by the petitioner.

17. The MMDR Act itself is a legislation made for the purpose of granting prospecting or mining leases within the territory of India. When the ilmenite is imported, which is mined outside the territory of India, the said Act cannot be applicable. The Mineral http://www.judis.nic.in W.P(MD)Nos.24396 & 22615 of 2019 Conservation and Development Rules 2017 traced their origins to the Sections 15, 18 and 23C of MMDR Act, 1957. When the Act itself does not apply to the imports, by no stretch of imagination it could be stated that the said rules applies to the imports. As the ilmenite is freely importable, the first respondent has no authority to interfere with the imports nor exercise the powers of Central Government and thus, exceeded its jurisdiction.