M. D. Overseas Limited Vs Union of India And Ors. (Delhi High Court)
The issue under consideration is whether the Public notice issued by DGFT for restricting the issuance of Advance Authorisation is justified in law?
The Petitioner is an incorporated Company engaged in diverse businesses including the manufacture and export of Gold Jewellery and Gold Medallions, for which, the Petitioner regularly imports Gold bars. In the present case, the Petitioner through its application had sought Advance Authorization under the Foreign Trade Policy (FTP) seeking for import of Gold Bars and export of Gold Medallions & Coins. DGFT, through the impugned Public Notice, disallowed the issue of Advance Authorization for two export items namely “Gold Medallions and Coins” or “Any Jewellery manufactured by fully mechanized process”.
High Court states that, the Categorisation or Re-Categorization cannot be done by the public notice, such exercise has to be undertaken by specific amendment to the Foreign Trade Policy under Section 5 of the Act which is beyond the power, jurisdiction and authority of DGFT.
Hence, the power exercised by DGFT by issuing public notice to restrict the Advance Authorisation is considered as illegal and therefore quashed and set aside.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
