DGFT Has No Authority To Violate The Foreign Trade Policy, Power Lies Only With Central Govt: Karnataka High court

The Karnataka High Court has held that only the Central Government can make provision for prohibiting, restricting, or regulating the import or export of goods or services, or technology and not the Director General of Foreign Trade (DGFT). M/S Patanjali Foods Limited Versus Union Of India (Writ Petition No.14963 Of 2022). The single bench of Justice S.R. Krishna Kumar presided over this case.


Petitioner Company is engaged in the business of solvent extraction, refining of oils, manufacture of soya food products, import, export and trading of agricultural commodities. Petitioner Company was earlier known as M/s. Ruchi Soya Industries Ltd. and the name of the Petitioner Company has changed from M/s. Ruchi Soya Industries Ltd. to M/s. Patanjali Foods Limited w.e.f. 24.06.2022. Petitioner had entered into a contract with its foreign supplier viz. Aston Agro Industrial SA, Switzerland for import of the subject goods, Crude Sunflower Seed Oil of Edible Grade in Bulk. The said foreign supplier had supplied 6000 MTs of the subject goods vide its Invoice dated 10.06.2022. The subject goods were shipped vide vessel ‘MT Loyal’ with port of discharge being Mangalore Port, India. The subject goods were dispatched against Eight Bills of Lading dated 04.06.2022 and four Bills of Lading dated 07.06.2022. The aforesaid vessel carrying the subject goods arrived at Mangalore port and was granted Entry Inward on 30.06.2022. Petitioner had filed Warehouse Bill of Entry No. 9296578 dated 27.06.2022 under Section 46 of the Customs Act, 1962 and the subject goods were warehoused accordingly.


The court held that, “Insofar as the other judgments of the High Courts of Gujarath, Madras and Andhra Pradesh relied upon by the respondents are concerned, apart from the fact that the facts obtaining in the said cases were different; Notifications were issued by the Central Government and not by the DGFT as is evident in the instant case and consequently, even these judgments are inapplicable to the case on hand”




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