Global Exim & Another Vs Union of India & Others (Madhya Pradesh High Court)
The Madhya Pradesh High Court recently ruled in favor of Global Exim and another petitioner regarding their entitlement to duty-free imports under the Transferable Duty-Free Import Authorization (DFIA). The petitioners, a registered partnership firm, challenged the respondents’ denial of DFIA benefits for importing Whey Powder, Whey Protein Concentrates, and other products categorized under Milk and Nut Products. The court examined the provisions of the Foreign Trade Policy (2009-14), concluding that the petitioners were entitled to the benefits as per paragraph 4.2.2 of the policy.
The court relied on the judgment of the Punjab and Haryana High Court in Pushpanjali Floriculture Pvt. Ltd. v. Union of India (2016), which had previously ruled against retrospective amendments to the Foreign Trade Policy that divested license holders and transferees of benefits already granted. The Punjab and Haryana High Court held that the central government lacked the authority to introduce retrospective amendments limiting exemptions under the DFIA scheme. This precedent reinforced the petitioners’ claim that they were entitled to import their goods under the DFIA framework.
The respondents, represented by counsel, acknowledged the previous ruling but noted that a Special Leave Petition (SLP) was pending before the Supreme Court. However, the court found no stay had been granted in the matter and thus proceeded to apply the principles laid down in Pushpanjali Floriculture Pvt. Ltd. Additionally, the court referred to its own past ruling in M/s. Global Exim v. Union of India (2018), where a similar issue involving duty-free imports of bearings was decided in favor of the petitioner. The respondents did not dispute the applicability of these judgments, further strengthening the petitioners’ case.
