TESTEELS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS appeal by special leave is from the judgment of the High Court of Gujarat in Special Civil Application No. 1294 of 1977 under Article 226 of the Constitution of India.

(2.) THE Government of India Ministry of Foreign Trade announced through public notice No. 196-ITC(PN)/69 dated 8/12/1969 a scheme for registration of contracts involving deliveries extending over a period of not less than 12 months for cash assistance, hereinafter referred to as 'the scheme'. THE Government decided to extend the scope of the scheme as was announced by letter No. 12 (22/67-EAC) dated 4/02/1970, hereinafter referred to as 'the 1970 scheme', stating inter alia, in paragraph 3 that the registered exporter of export products under a contract involving deliveries extending over a period of not less than 12 months, registered by the banks in terms of paragraph 3 of the public notice dated 8/12/1969 will be eligible for claiming cash assistance at the same percentage as was prevailing on the date of the Firm contract so registered provided that the bank attested invoice which is normally produced for the purpose of claiming cash assistance bears a further attestation from the negotiating bank to the effect that exports effected in this invoice is against a contract registered with them giving the Registration number and date. If during the currency of the registered contract the rate of cash assistance is reduced by Government, the higher rate of cash assistance existing on the date of the Firm contract would be admissible on exports under the said contract. If, on the other hand there is an increase in the rate of cash assistance percentage during the currency of the registered contract, exports made during the contract would not normally be eligible for the benefit of the increased rate; in special cases where the operation of this rule is likely to affect an exporter adversely, Government would be prepared to consider the matter on merits. It was also stated in paragraph 5 that the registered exporter would be entitled to claim cash assistance as and when the exports are made against the registered contracts and the application would be submitted to the disbursing authority in accordance with the policy and procedure announced from time to time by that Ministry. By letter No. 12(4)72-EAC dated 20/04/1972 on the subject of Amendment No. 53 the cash assistance scheme on export of engineering goods was modified to the effect that an additional cash assistance of 5 Per Cent of the f.o.b. value will be allowed on all exports made to North American and South American countries and to New Zealand and these facilities of normal cash assistance and additional cash assistance will be allowed on exports effected during the period from 1-4-1972 to 30-9-1972, the later date being included. By letter No. 12(13)/73-EAC dated 16/06/1973 referring to Amendment No. 59 it was announced that cash assistance on transmission towers will be made admissible on exports thereof made during the period from lst October 1972 up to and including 31/03/1973 at the rate of 25 Per Cent of the f.o.b. value.

(3.) THE appellants thereafter moved an application under Article 226 of the Constitution of India in the Gujarat High, Court which partly allowed the petition restraining the respondents from enforcing the demand for the refund of the amount already paid by way of cash assistance and rejecting the appellant's claim in so far as the contracts entered into in the context of the offers made subsequent to April 1972 because the cash assistance declared as on 1/04/1972 and thereafter was in terms made available up to a specific date. THE exports under the two concerned contracts namely Nos. 2-B and 3 were admittedly made after July 1974, though in case of contract No. 2-B the date of offer was 31-8-1972 and the date of acceptance was 27-10-1972 and the date of registration 13-11-1972, and in the case of contract No. 3 date of offer was 28-4-1973 and date of acceptance of 5-6-1973 and date of registration was 15-6-1973.