RAMESH ENTERPRISES Vs. COFFEE BOARD

JUDGEMENT

(1.) - Special Leave is granted.

(2.) Before we proceed further, it is necessary to note two facts. The first is, as has been stated clearly in the above clause, that the period of 45 days is to be calculated from the date of the auction inclusive of that date. Secondly, the provision in the clause for sharing the excess or reduction in the rates, taxes, duties, imposts etc. is made for the express purpose of fixing the reserve price below which the specific lot of coffee is not to be sold at the auction. For fixing such upset price, the Board takes into account, among other things, the existing rates of taxes and duties. Admittedly, when the auction was held on 18th May, 1977, the Board had taken into consideration, among other things, the export duty which existed till 17th May, 1977, i.e., the day prior to the date of the auction, and had fixed the reserve price accordingly. Since export duty is a component factor for the fixation of the upset price, the quantum thereof depends upon what the export duty at a given point of time is.

(3.) It appears that till 17th May, 1977 the export duty on coffee was Rs. 2,200/- per quintal. However, on the 18th May, 1977, i.e., the date on which the auction was held, it was reduced to Rs. 1,600/- per quintal. Admittedly, at the time the auction was held no communication of the reduction of the duty issued at New Delhi had-been received by the Board, and the reserve price, therefore. was not altered by the Board to reflect it. There is no dispute that if the Board had received the said communication, the reserve price would have been fixed at a different level.