Page 162 - ELT_1st August 2020_Vol 373_Part 3

344 EXCISE LAW TIMES [ Vol. 373

judgment and order dated 30-1-2018 rendered in the case of Logan Minerals Pvt.
Ltd. v. Union of India in Special Civil Application No. 22428 of 2017 and allied
matters, had considered the scheme of the DI&P Act as well as the Plant Quaran-
tine Order and had held that if cotton seeds happened to be animal feed, the
same would fall under Entry No. 19 of Schedule-VII. The Court held that cotton
seeds for sowing purposes would fall under Schedule-V, whereas cotton seeds
for animal consumption would fall under Schedule-VII. The Court concluded
that it was open for the importer to import cotton grains for animal feed by com-
plying with the conditions contained in Schedule-VII. Considering Entry No. 19,
namely the amendment in the definition of “animal feed”, the Court held that
such animal feed must be in kibbled/crushed seeds form or in the form of pellet
or dried cake and the added requirements are more in the nature of conditions
imposed for the import of any substance as animal feed. The Court observed that
such conditions cannot be seen as clarificatory in nature and only on this basis, it
would not be open for the Ministry of Agriculture to prevent the import of the
consignment. However, keeping in mind the anxiety of the Ministry of Agricul-
ture as well as the concerns of environmental damage or the spread of unknown
diseases to plant and animal species, the Court, with a view to balance equities,
directed that the respondent No. 2 therein shall have the samples of consignment
tested through Government or Government recognized laboratory for the pur-
pose of germination and if it is found that the rate of germination is so low that
the seeds are incapable of being used for sowing, this condition shall stand ful-
filled. The Court further directed that the petitioner shall file an undertaking be-
fore this Court that the goods would not be sold to the ultimate consumer before
being crushed or kibbled or converted into cake form. The Court observed that
such an agreement will be entered into with the local purchasers of such import-
ed goods and a declaration that the same have been crushed or kibbled or con-
verted into cake form would be filed before the authorities within two months.
14. In the above backdrop, certain statutory provisions may be referred
to. Section 3 of the DI&P Act empowers the Central Government to prohibit or
regulate, subject to such restrictions and conditions as the Central Government
may impose, the import into India or any part thereof or any specified place
therein, of any articles or class of articles likely to cause infection to any crop or
of insects generally or by class of insects by way of a notification in the Gazette of
India. It further provides that a notification under the section may specify any
article or class of articles or any insect or class of insects either generally or in any
particular manner, whether with reference to the country of origin or the route
by which imported or otherwise. Thus, the section empowers the Central Gov-
ernment to place restrictions or conditions on the import into India of any articles
likely to cause infection to any crop or of insects generally or by class of insects.
The present case relates to infection to any crop.
15. Section 4 of the DI&P Act provides that a notification under Section
3 shall operate as if it has been issued under Section 19 of the Sea Customs Act,
1878 and the officers of Customs at every port shall have the same powers in re-
spect of any article with regard to the importation of which such a notification
has been issued as they have for the time being in respect of any article the im-
portation of which is regulated, restricted or prohibited by the law relating to Sea
Customs and the law for the time being in force relating to Sea Customs or any
such article shall apply accordingly.
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