Facts of the Case

The petitioner, Lima Shree Exports Private Limited, a Kakinada-based exporter, had challenged Notification No. 31/2015-2020 dated 08.09.2022, issued by the Union of India, banning/prohibiting export of broken rice under HS Code 1006 40 00 with effect from 09.09.2022. The petitioner sought to be permitted to export 18,000 metric tonnes of broken rice under a pre-existing export contract (dated 25.08.2022) with a Swiss buyer, entered into before the ban took effect, contending the notification was arbitrary and violated its constitutional and contractual rights. Respondents included the DGFT, the Chief Commissioner of Customs and Central Tax, Visakhapatnam Zone, and Customs authorities — reflecting that this is fundamentally a foreign-trade and customs matter, not a GST dispute.

Issues Involved

  1. Whether the export ban notification could be set aside as applied to pre-existing, contractually committed export consignments.

Petitioner's Arguments

  • Sought to set aside the export ban as illegal and arbitrary insofar as it prevented export of broken rice contractually committed before the ban's imposition, and sought a direction to permit export of the 18,000 MT consignment under its existing contract.

Respondent's Arguments

The order does not record substantive arguments from the Union of India or Customs respondents on the merits, as the matter concluded on the petitioner's own request for withdrawal.

Court Order / Findings

  • At the hearing, the petitioner's counsel informed the Court that the petitioner itself had, by letter dated 19.06.2023, sought permission to withdraw the writ petition.
  • The Court perused the letters on record, accorded permission, and dismissed the writ petition as withdrawn, without costs.
  • No findings were recorded on the legality of the export-ban notification.

Important Clarification

This case has no bearing on GST law; it concerns the Centre's export-control powers over foodgrains under the Foreign Trade (Development and Regulation) Act, and was closed at the petitioner's own instance without any judicial ruling on the export ban's validity.

Sections Involved

  • Foreign Trade (Development and Regulation) Act, 1992 — export prohibition notifications
  • Article 226, Constitution of India, 1950

Decision – In Favour of

Dismissed as withdrawn at the petitioner's own request — no decision on merits.

Case Details

  • Court: High Court of Andhra Pradesh at Amaravati
  • Case No.: Writ Petition No. 9882 of 2023
  • Coram: Hon'ble Sri Justice Ravi Cheemalapati
  • Date of Order: 28 July 2023

Link to Download the Order

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