GANESH ROLLING MILLS Vs. UNION OF INDIA

JUDGEMENT

(1.) The two writ petitions, namely, C.W. Ps. 1974 and 2133 of 1984 under Article 226 of the Constitution of India challenge the fact of respondents 2 and 3 in not granting and/or disposing of the applications of the petitioners for grant of permission to direct import of carbon steel re-rollable scrap, in terms of para 73(2) of Import Export Policy of AM-1984 read with paragraph 155(1) of Hand Book of Import Export Procedure AM-1984.

(2.) I will take the facts from C.W.P. 1974/84. The petitioner is engaged in the manufacturing of M.S. Rounds/Rounds, Flats Angles, Challans etc. The raw material for the manufacturing of the aforesaid goods is carbon steel re-rollable scrap. It is alleged in the writ petition that to know the requirement, an Assessing Committee was appointed and assessed the capacity for a consumption of each of the units and was certified. The petitioner's in C.W.P. 1974/84, capacity of consumption was assessed to the tune of 16,700 M.Ts. per annum and this was the decision of the Technical Committee appointed by the Central Government. The same was published and the name of the petitioner appears at page 201 at the said publication whereas the assessed capacity for consumption has been shown as 16700 M.Ts. per annum. In case of petitioner, in C.W.P. 2133/84, the capacity was assessed to the tune of 2900 M.Ts. per annum. He has filed a copy of the capacity certificate dated May 26,1982 which states that based on the capacity assessed by the Technical Committee on re-rolling industry, the capacity of the firm is assessed as 2900 metric tonnes only per annum.

(3.) During the policy periods upto AM-1983, the said re-rollable scrap was under O.G.L. By means of public notice dated November 17,1982 the said item was canalised and accordingly the same could be imported only through canalising agency which was specified as Metal Scrap Trading Corporation. The import and export policy for the year AM-1984 was announced. The provision relating to canalisation of imports are contained in paras 66 to 76. Under para 68 of the policy, the eligible actual users had to register their twelve months requirements with the concerned canalising agency. They had to furnish earnest money calculated at 2% of the sale value of the quantity so registered or Rs. 50,000/-, whichever is less. Under para 70, in case of such items as are produced indigenously, the canalising agency had to try to meet the registered requirements from indigenous supplies, partly or wholly, instead of imports. Under para 73(2), the importers would be allowed to have import of licence to the extent of 25% of the c.i.f. value of their actual consumption of that item imported during the year 1982-83. Para 155(1) of the Hand Book of Import-Export Procedures AM-1984 is the relevant para for my purpose and reads as under :-