MOHAN MACHINES LTD Vs. UOI

JUDGEMENT

(1.) The petitioner seeks a direction for quashing the order of the Joint Director General, of Foreign Trade, dated 24-1-1997, (hereafter "the impugned order") in appeal, issued under the Foreign Trade and Development Act, 1992 (hereafter "the Act").

(2.) Two purchases orders were placed on the petitioner on 20th September 1984, and 11th March 1985, by the National Diary Development Board, ("NDDB") under a world Bank project. The NDDB is, a Government of India Enterprise. According to the purchase orders, the petitioner had to fabricate and supply 21 barrels for broad guage Rail Milk tankers. The first purchase order was for supply of 11 barrels and the second was for the supply of 10 barrels. The Broad gauge Rail Milk Tankers were to have stainless steel sheet content of 59701 Kgs., suitable for carrying 40 thousand liters per barrel, complete with all other components and fittings for a FOB value of Rs. 60,42,000/-. As the supplies were to be made under a World Bank project, it was a "deemed export" by it petitioner to NDDB, Anand.

(3.) It is an undisputed fact that as against the first order for 11 barrels, the petitioner manufactured two barrels with stainless steel purchased from the local market, and supplied them to the purchaser. A Special Imprest Licence No.3197096 dated 14th September, 1988 was issued by the Controller of Imports and Exports to the petitioner to meet the export order for the balance 19 barrels. In terms of the license, the petitioner was to import Stainless Steel/Coils-AISI 304 of the following specifications: <FRM>JUDGEMENT_1614_ILRDLH16_2007Html1.htm</FRM> The approximate CIF value of the consignment to be imported was Rs.24,19,909/- and the Import Duty leviable was exempted, as a corresponding export obligation of FOB value of export of Rs.60,42,000/- was imposed upon the petitioner.