DGFT Policy vs Customs Action: Delhi HC Directs Strict Implementation of Minimum Import Price on Soda Ash [Read Order]
The Court warned that any Commissionerate found permitting imports in violation of the MIP would be liable for stringent action in accordance with law.
Soda Ash - Taxscan
Soda Ash - Taxscan
The Delhi High Court has directed all Customs authorities to ensure the strict implementation of the Minimum Import Price (MIP) on Soda Ash, warning of stringent action for any violations.
The Alkali Manufacturers Association of India (AMAI), the petitioner, representing the interest of domestic alkali industries, filed a writ petition under Article 226 of the Constitution of India, seeking enforcement of Notification No. 46/2024-25, which imposed an MIP of Rs. 20,108 per metric ton on Soda Ash.
The petitioner's grievance was that the Customs Department was permitting imports of Soda Ash at prices below the MIP, thereby adversely impacting the domestic industry. The authorities, including the Customs Department and the Directorate General of Foreign Trade (DGFT), submitted that the MIP was being strictly implemented for all imports where the bills of entry or bills of lading were issued after the notification's date.
It was explained that the alleged exceptions cited by the petitioner pertained to imports where the shipping documents pre-dated the MIP notification, and thus, were legally exempt. The DGFT also pointed to an Office Memorandum it had issued to field formations to ensure the policy's implementation.
The Division Bench of Justice Prathiba M. Singh and Justice Shail Jain noted that the authorities had already taken steps to enforce the policy. Accepting the stand of the authorities that the MIP is being enforced as per the date of the bill of lading, the Court found no deliberate violation of the policy.
Accordingly, the Court disposed of the petition, but not before issuing clear directions to all Customs authorities across various ports to implement the MIP notifications "strictly in letter and spirit". The Court warned that any Commissionerate found permitting imports in violation of the MIP would be liable for stringent action in accordance with law.
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