Gujarat High Court Quashes Mandatory Import Permit for Acrylonitrile Used in Non-Insecticidal Applications

Court Rules Public Notice Violates Insecticides Act; Exempts Acrylonitrile from Registration and Permit Requirements

In a landmark judgment, the Gujarat High Court has quashed a public notice requiring import permits for Acrylonitrile when used for non-insecticidal purposes. The bench, comprising Justices A.S. Supehia and Pranav Trivedi, delivered the judgment in a batch of petitions led by Apcotex Industries Ltd. against the Union of India and others. The court held that the public notice dated 17 February 2022, mandating import permits, was contrary to the provisions of the Insecticides Act, 1968.

The case revolved around the importation of Acrylonitrile, a crucial raw material for manufacturing synthetic rubbers, such as Nitrile Butadiene Rubber, used by Apcotex Industries. The petitioner argued that Acrylonitrile, listed under the Customs Tariff Act, 1975, is freely importable and does not require an import permit for non-insecticidal use as per Section 38 of the Insecticides Act, 1968.

The court observed that Section 38 of the Insecticides Act, which begins with a non-obstante clause, exempts substances used for non-insecticidal purposes from the Act's provisions, including the need for registration under Section 9. The bench also referenced a similar ruling by the Kerala High Court, which had exempted Ethylene Di-Chloride used for non-insecticidal purposes from requiring an import permit.

The court emphasized that the respondent authorities had misapplied the provisions of the Act by insisting on the import permit, thus violating the legislative intent of Section 38. The ruling provides significant relief to industries relying on the import of Acrylonitrile for manufacturing processes unrelated to insecticidal applications.

The decision is expected to facilitate smoother import processes for companies like Apcotex Industries, ensuring that non-insecticidal imports are not hindered by unnecessary regulatory burdens.

Bottom Line:

Import of Acrylonitrile for non-insecticidal use - Exemption under Section 38 of the Insecticides Act, 1968 applies; Import permit and registration requirements under Section 9 of the Insecticides Act, 1968 are not mandatory for substances intended for non-insecticidal use.

Statutory provision(s): Insecticides Act, 1968 Sections 9, 38

Apcotex Industries Ltd. v. Union of India, (Gujarat)(DB) : Law Finder Doc Id # 2817055