MAHARASHTRA FUR FABRICS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition is directed against the various orders passed from time to time by the respondent incorporated at Exhibit-I, N,O and R1 to R7, whereby and whereunder, the Ministry of Commerce, Government of India, New Delhi denied cash incentive known as Cash Compensatory Support ('CCS' for short) to the petitioners. THE BACKGROUND FACTS :

(2.) THE background facts lie in a narrow compass. First petitioner carries on business of manufacturing High 'Pile Fur Fabrics'. They have a factory in a Government notified backward area outside Bombay. The second petitioner is the shareholder of the first petitioner and a citizen of India.

(3.) BY virtue of various Circulars issued from time to time prior to 30th March, 1988, the ultimate exporter was entitled to receive from the Central Government CCS. This Scheme has been in operation since 1966 and has undergone modifications from time to time. Such benefits of CCS and Supplementary Cash Assistance in lieu of excise duty were also available to other types of 'Deemed Exports' against supplies made by Indian firms to projects financed by IDA/IBRD/UN Organizations as also against supplies of some products to Oil and Natural Gas Commission ('ONGC' for short). In other words, 'deemed exports' i.e. supplies made by an indigenous manufacturer against intermediate advance licenses prior to 30th March, 1988 were not entitled to any CCS.