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Star Diamond Company India v. Union Of India And Others

Star Diamond Company India
v.
Union Of India And Others

(Supreme Court Of India)

No | 12-09-1986


SABYASACHI MUKHARJI, J.

1. These two Civil Misc. Petitions are by Star Diamond Company India. The applicant has referred to the judgments of this Court in Raj Prakashs case [1986] 2 SCC 297 [LQ/SC/1986/52] dated 5th March, 1986 and Indo Afghan Chamber of Commerces case AIR 1986 SC 1567 [LQ/SC/1986/196] dated 15th May, 1986. The applicant states that the applicant was neither a party nor was served with any notice of the said proceedings resulting in the. said two decisions. According to the applicant, it was not bound by the directions therein. We are unable to accept the said contentions. Such decisions of Court laying down the position in law are laws binding on all.

2. In the order of this Court dated 18th April, 1985, the question of entitlement under certain circumstances came up for consideration. The Government had wrong fully refused to allow Export House Certificates to those who had not diversified their exports. It was held by this Court following the decisions of several High Courts that this was wrong. This Court in the order dated 18th April, 1 985 in Civil Appeal No. 1423 of 1984, (a) confirmed the orders of the High Court, quashed the impugned orders of the Government and directed the Government to issue necessary Export House Certificates for the year 1978-79; (b) It was further directed that Export House Certificates should be granted within three months from this date. (c) Save and except items which are specifically banned under the prevalent import policy at the time of import, the parties- the merchants would be entitled to import all other items whether canalised or uncanalised, and in accordance with the relevant rules. Both canalised and uncanalised items could be imported in accordance with the relevant rules except those which were specifically banned under the prevalent import policy at the time of import. The effect of this direction came to be considered in Raj Prakash Chemicals Ltd. v. Union of India (supra). We have this date explained the effect of the same in Union of India v. M/s Godrej Soaps Pvt. Ltd &Anr., (Civil Appeal No. 3418/86 arising out of SLP (Civil) No. 8144 of 1986). This question further came up for examination in the case of M/s Indo Afghan Chamber of Commerce &Ors. v. Union of India, (Writ Petition No. 199 of 1986) (supra). This day we have also in the judgment in M/s Godrej Soaps case explained the true purport of the said decision.The respondents have not permitted, according to the applicant clearance of the goods in view of the said two decisions referred to hereinbefore.

3. The case of the applicant is that it is not bound as the applicant was neither a party to any of the aforesaid proceedings nor any notice was given. We are unable to accept this position. For what we held in the said two decisions, we crave leave to refer to the said two decisions. We reiterate as we have mentioned in M/s Godrej Soaps case whether importation of canalised items would be covered by the order was not adverted to in the first order dated 18th April, 1985. Use of the expression "whether canalised or not" was intended to convey that both canalised and non-canalised items would be covered within the ambit of the order.

4. The position has been clarified by t he letter dated 18th June, 1986 written by the respondent which appears at page 132 of the Paper Book. It has been mentioned that the holders of additional licence issued for 1978-79 would be entitled to import only those goods which are included in Appendix 6 Part 11 of AM 85-88. The fact that the Additional Secretary to the Government of India, Ministry of Finance (Department of Revenue) on 23rd April, 1986 wrote a letter which is not in consonance with the subsequent direction would not in any way affect the position or create any estoppel. Nor can such a letter be used as an argument that that was the governments understanding of the matter. That is irrelevant.

5. In the premises the interim order p rayed for in these applications is refused.

6. The applications are thus disposed of. There will be no order as to costs.

Advocates List

S.N. Kacker, P.M. Amin, Atul, B . Munim, Ashok Grover, A.K. Ganguli, Miss Sushma Relan, Miss A. Subhashini, Advocates.

For Petitioner
  • Shekhar Naphade
  • Mahesh Agrawal
  • Tarun Dua
For Respondent
  • S. Vani
  • B. Sunita Rao
  • Sushil Kumar Pathak

Bench List

HON'BLE JUSTICE SABYASACHI MUKHARJI

HON'BLE JUSTICE R. S. PATHAK

Eq Citation

(1986) 4 SCC 246

[1986] 3 SCR 781

AIR 1987 SC 179

1986 (10) ECC 403

1992 (61) ELT 170 (SC)

1986 (9) ECR 7 (SC)

JT 1986 (SC) 413

1986 (2) SCALE 407

LQ/SC/1986/317

HeadNote

Customs — Import of goods — Export House Certificates — Canalised items — Held, canalised items could not be imported by holders of Export House Certificates — Export House Certificates would be valid only for import of uncanalised items — Government's letter dt. 23-4-1986 not binding on Government — Government's letter dt. 18-6-1986 clarifying the position, upheld — Customs Act, 1962, S. 25