WOOL WORTH INDIA LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE subject matter of the present writ petition is a Notification dated 1 st July 1997 issued by the Ministry of Petroleum and Natural Gas (,,MPNG), Government of India stating that supply of furnace oil for captive use of 100% export oriented undertakings (,,EOUs) would be made at international rates. THE grievance of the Petitioner, which is an EOU, is that despite the above Notification, furnace oil was supplied at international rates only for the period between 7th October 1997 and 31st March 1998. THE further grievance is that after 1st April 1998, the price for supply of furnace oil by Hindustan Petroleum Corporation Ltd. (,,HPCL) and Indian Oil Corporation Ltd. (,,IOCL), Respondent Nos. 3 and 4 respectively, was nearly doubled the previous price although there was no such increase in the international market during the said period for furnace oil or any other oil products.

(2.) ACCORDING to the MPNG, the Notification dated 1st July 1997 itself made it clear that supply would be made at international rates only where furnace oil was an exportable surplus and where furnace oil was not an exportable surplus, "the oil companies would import furnace oil on behalf of 100% EOUs and supply them at the landed cost plus applicable duties if any, delivery charges and margins, etc. with no adjustments in the pool account." It is submitted that the supply of furnace oil was not made at international rates prior to 7th October 1997 and later than 31st March 1998 since there was no exportable surplus and due to non-availability of facilities at port locations.

(3.) ONE of the grievances made by the Petitioners is that after 1st April 1998 the HPCL and IOCL began charging @ Rs. 4,801/- per KL of furnace oil which was nearly double the previous price and there was no such increase in the international prices for the furnace oil.