Indian Kanoon - Search engine for Indian Law

10. In reply, the learned counsel for the first and second Respondents submitted that ammonium nitrate is an explosive. By notification dated 21.07.2011, the Ministry of Commerce and Industry declared that ammonium nitrate is an explosive within the meaning of Section 17 of the Explosives Act. In view of the fact that it is an explosive, she submitted that traders are not permitted to import ammonium nitrate. Her next submission was that the application of the Appellant for a P5 licence was admittedly rejected by order dated 19.08.2015 on the ground that he is a trader and that it is not in national interest to grant an import http://www.judis.nic.in 8 of 25 licence to a trader. In this regard, she also submitted that the P5 licence had not been granted till date to a trader.

17. In addition, we note that ammonium nitrate having the chemical formula NH4NO3 or any combination containing more than 45% of ammonium nitrate by weight shall be deemed to be an explosive as per the Explosives Act. This position emerges from the notification dated 21.07.2011 of the Ministry of Commerce and Industry which was issued under Section 17 of the Explosives Act. Keeping in mind the fact that ammonium nitrate is an explosive in any combination containing more than 45% of ammonium nitrate by weight and the admitted fact that the application for import licence was rejected, we conclude that the Appellant was not entitled to import 740 MT of Ammonium Nitrate on 24.09.2015 and, consequently, the detention and subsequent auction of the consignment of ammonium nitrate by the Customs authorities cannot be faulted.

Ammonium Nitrate Rules, 2012:

a) The Explosives Rules, 2008 and Ammonium Nitrate Rules, 2012 framed under Explosives Act 1884 are sharing equal importance in terms of National Security. The national internal and external security concern becomes more crucial, when Ammonium Nitrate is allowed for import by traders for domestic sale and for export by traders.

After careful perusal of records and considering the facts of the case, the provisions of the Explosives Act. 1984 and Ammonium Nitrate Rules, 2012, the appeal is dismissed and the order dated 19th August, 2015 of Chief Controller of Explosives is upheld."

22. Keeping in mind the Ammonium Nitrate Rules, the facts of this case and the documents on record, we find that the rejection of the http://www.judis.nic.in 22 of 25 Appellant's appeal is in order. We also find that the learned single Judge duly considered the provisions of the Explosives Act, the Ammonium Nitrate Rules, the communication dated 16.09.2016 of the Chief Controller of Explosives and the order impugned in the writ petition while rejecting the writ petition. Considering all of the above, we find that the said order does not warrant interference and there is no merit in the appeal. Therefore, the appeal is dismissed. No costs. Consequently, connected miscellaneous petitions are closed.