Order date – 23 March 2023

Parties – M/s. M.R.Impex Vs The Union of India & Anr

Facts –

• The petitioner, M/s.M.R.IMPEX , is an Assessee under the Income Tax Act and conducts business of importing Poppy Seeds from China and Turkey.
• The petitioner contends that the amendment to the Import Policy Condition No.3 of Chapter 12 of ITC (HS) 2012 - Schedule I (Import Policy) is without jurisdiction as the Director General of Foreign Trade (DGFT) is not the competent authority to issue the amendment Notification.
• The petitioner claims that the Central Government alone is the authority to issue the Gazette Notification, which is impugned in the writ petition.

Issue –

• Whether the Director General of Foreign Trade (DGFT) is the competent authority to issue the amendment Notification?

Order –

• The Court held that the Central Government is competent to issue regulations for foreign trade under Section 3 (1) of the Foreign Trade (Development and Regulations) Act, 1992, and that the impugned amendment was issued by the Central Government in exercise of its powers under the Act.
• It observed that the alleged signature of the Director General of Foreign Trade made pursuant to the application of powers under Administrative Law shall not invalidate the Notification, which is otherwise issued pursuant to Section 3 of the Foreign Trade (Development and Regulations) Act, 1992.
• The Court held that the delegation of powers to the Director General of Foreign Trade was made for the smooth functioning of the Central Government Administration and that the grounds raised by the petitioner are untenable.
• Thus, the Court found no infirmity in respect of the amendment issued to the Foreign Trade Policy and dismissed the writ petition.