INDO AFGHAN CHAMBERS OF COMMERCE & ANR. ETC. versus UNION OF INDIA & ORS. ETC.

Citation: [1986] 3 S.C.R. 88 · Decided: 15-05-1986 · Supreme Court of India · Bench: R.S. PATHAK · Disposal: Appeal(s) allowed

Cited by 2 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

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INDO AFGHAN CHAMBERS OF COMMERCE & ANR. 
ETC. 
v. 
UNION OF INDIA & ORS. ETC. 
MAY 15, 1986 
[R.S. PATHAK AND SABYASACHI MUKHARJI, JJ.] 
Import Policy 1985-88-Appendix 2 Part B and Item l of Ap-
pendix 6-Dry fruits-Import by diamond exporters-Holding addi-
tional licences-Whether permissible. 
The petitioner, an associations of dealers engaged in the business 
of selling dry fruit in North India, who purchase dry fruits either locally 
or through imports from outside India, challenged the grant of addi-
tional licences to the respondents-<liamond exporters, under Article 32 
of the Constitution. 
On behalf of the petitioners, it was contended: (i) that the goods 
sought to be imported on the Additional Licences included those which 
were prohibited by the prevalent Import Policy; (ii) that the principle 
which was applied to the import of acrylic easter monomers extends 
likewise to the import of all other commodities under Additional 
Licences granted to diamond exporters in similar circumstances and, 
therefore, the diamond exporters are not entitled to import dry fruit; and 
(iii) that the import of dry fruit is covered by item 121 in Appendix 2 
Part-B (List of Restricted Items) of the Import Policy 1985-88 and, 
therefore, the respondents are not entitled to resort to Item I of 
Appendix6. 
On behalf of the respondents, it was contended: (i) that paragraph 
176 of the Import Policy 1978-79 envisages the grant of Additional 
Licences for the import of raw materials which have been placed on 
Open General Licence for Actual Users (Industrial); (ii) that they im-
port the dry fruits as raw material for the purpose of selling to eligible 
Industrial Actual Users for processing for manufacturing into a variety 
of products under Item 1 of Appendix 6 of the Import Policy 1985-86; 
(iii) that item 121 of Appendix 2 Part-B (List of Restricted Items) is not 
attracted because it refers to "consumer goods", and consumer goods 
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IN DO-AFGHAN CHAMBERS OF COMMERCE v. U.0.l. 
89 
are not raw material for the purposes of item 1 of Appendix 6; and (iv) 
that the petition under Article 32 is not maintainable because the 
petitioners' fundamental rights are not violated, in as much as no 
appeal has been filed by the Customs Authorities or by the Import 
Control Authorities against the interim order dated January 8, 1986 of 
the High Court directing the Customs Authorities to permit the respon-
dents to clear the imported consignment of almonds. 
Allowing the Writ Petition and the Appeal, 
HELD: 1. Respondents Nos. 10 and 11 are restrained from im-
porting dry fruits during the period 1985-88 under the Additional Li-
cences granted to them under the Import Policy 1978-79. [97F] 
2. Under the Import Policy 1978-79, dry fruits (excluding 
cashewnuts) could be imported by all .persons for whatever purpose 
under the Open General Licence. No Additional Licence was required. 
By wrongful denial of Additional Licence to diamond exporters no dam-
age can be said to have been suffered by them and no question of restitu-
tion could, therefore, be said to arise. The wrongful denial of the Addi-
tional Licences was wholly immaterial to the importing of dry fruits 
(exluding cashewnuts). The respondents have not shown that the dry 
fruits were placed on Open General Licence specifically for Actual 
Users (Industrial). Under the Import Policy 1978-79 their import was 
open to all persons. [94F, Cl 
3. The position in regard to the import of dry fruits (excluding 
cashewnuts) is simple and suffers from no complexity. Dry fruits (exc-
luding cashewnuts) could be imported by all persons under Open Gene-
ral Licence under the Import Policy 1978-79. But under the Import 
Policy 1985-88 dry fruits (excluding cashewnuts and dates) are no 
longer open to import under Open General Licence. If dry fruits (exc-
luding cashemmts and dales) are regarded as items for stock and sale, 
the import is governed by paragraph 181(3) is Chapter XIII of the 
Import Policy 1985-88, which declares that import of dry fruits (exclud-
ing cashewnuts and dates) will be allowed against licences issued to 
dealers engaged in this trade. [94E-H[ 
4. The diamond exporters cannot be regarded as dealers engaged 
in the trade of stocking and selling dry fruits (excluding cashewnuts and 
dates). They are, therefore, not entitled to the advantage of paragraph 
181(3) of the Import Policy 1985-88. [95A-B] 
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