UNION OF INDIA Vs. NORTHEN PLASTICS LIMITED

JUDGEMENT

(1.) The respondents herein claim that they are inter alia carrying on business of confectioning/slitting of jumbo rolls of photographic colour paper, graphic art films, cinematographic colour films and X Ray films. They claim to be a small scale industry registered in Uttar Pradesh. They applied for what is known as the COB (Carry on Business) Licence on 8-12-1986. The Government of India had announced on 18-7-86 that six months after the notification importation of photo sensitised material would not be allowed except under a licence under the I.D.R. Act. Since the application of the respondents was still under consideration and they had imported some photographic material, they applied on 4-4-87 for its clearance as an interim measure. On 8-4-1987 Mr. K. C. Kapoor, Desk Officer in the Department of Industrial Development informed the respondents that pending disposal of their application for licence they may carry on business with their small scale registration of manufacture of slitting/confectioning of photo sensitised material and that the Ministry had no objection to the Customs Department clearing the consignment of the jumbo rolls as per prescribed rules.

(2.) On 7-12-1988 the petitioners issued the COB licence to the respondents in respect of photographic colour paper only. Before issuance of the regular COB licence the petitioner filed the writ petition, bearing No. 2021 of 1988, out of which the present LPA's arise. In the original writ petition the petitioner has inter alia complained that M/s. Hindustan Photo Films Ltd., a Government of India undertaking was given favourable treatment in the matters of duty concession while the same was being refused to the petitioner. They complained of the violation of Art. 14. It was prayed that all record regarding the exemption notification dated 7-7-88 along with papers, regarding M/s. Hindustan Photo Films Ltd. should be produced. They also prayed that the respondent should issue COB licence in favour of the petitioner for all the four items of photographic material mentioned in their application dated 8-12-1986. After the COB licence was issued on 7-12-1988 the petitioner amended the writ petition challenging the refusal of the respondents to grant COB Licence for the rest of the three items, viz. jumbo rolls of X Ray films, graphic arts film cinematographic colour films. It was further prayed that the respondents be directed to issue COB licence for all the four photographic items mentioned in their application.

(3.) During the pendency of the writ petition the petitioners moved applications being CM.4405/88, CM.5180/88 and CM.252/89 for the release of various items of photographic material at concessional rate of customs duty. The orders on the said applications were passed on September 26, 1988 (D.B.), October 12, 1988, December 8, 1988 and February 9,1989. These appeals arise out of the last three interim orders passed by the learned single Judges.