GOKALDAS EXPORTS (P) LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner, a manufacturer/garment exporter when allotted export entitlements under the First Come First Serve (FCFS) quota in country category US/359, 347, CA/2 & EU/8 during the year 1999 in terms of the notification dated 16-10-1996 (for short policy') effected 85.42% of the entitlement, resulting in the Apparel Export Promotion Council, Bangalore ( AEPC' for short), forfeiting Rs. 1,29,486/- by order dated 23-10-2000 Annexure-"C" which when carried in appeal before the First Appellate Committee, was confirmed by order dated 28-6-2002 Annexure-"F" and dismissal of the second appeal by order dated 24-8-2004 Annexure-"H" of the Second Appellate Committee. Hence, this writ petition calling in question Annexure-"H" and for a declaration that the AEPC and the Appellate Committees have no jurisdiction to adjudicate upon the matter.

(2.) Petition is opposed by filing Statement of Objections dated 15-12-2004 of the 3rd respondent.

(3.) On behalf of Respondents 1 and 2, it is contended that export of textiles and clothing from India is based on bilateral agreements entered into between Government of India and Governments of developed countries under the aegis of the erstwhile Multi Fibre Arrangement (MFA) governing international textile trade from the year 1974. The Textile Importing countries are referred to as "Quota countries" who have placed restraints on import of specified textile categories "Quota items" within the annual levels prescribed in the bilateral agreement and that the coming into force of the World Trade Organisation (WTO) in 1995, quantitative restrictions known as "Import quotas" in the bilateral agreements were changed under the WTO relating to Agreement on Textiles and Clothing (ATC). The quotas also known as export entitlements are allocated amongst individual exporters, for which a system of allocation of quotas is formulated so as to optimize the export revenue in the economic interest of the country. It is stated that in furtherance of the said aim, the Government of India framed policies from time to time known as "Export Entitlement (Quota) Policies" and allocations of quotas are mainly done under the following categories in case of ready-made garments :