EUROFLAX INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) RULE, by consent, returnable forthwith. With the consent of Counsel and at their request, the Petition is taken up for hearing and final disposal.

(2.) THE Petitioners are engaged in the business of export of raw cotton to foreign buyers mainly in Hong Kong and China. On 17 August 2010 the Foreign Trade Policy for 2009-2014 was amended by the Central Government under Section 5 of the Foreign Trade Development and Regulation Act, 1992. By the amendment, the export of cotton was made free and reverted to the Open General Licence (OGL) subject to contracts for the export of cotton being registered with the Textiles Commissioner prior to shipment. Clearance of cotton consignments by Customs was directed to be made after verifying that the contract had been registered. Consequent upon the modification, the Government of India in the Ministry of Textiles issued a Memorandum on 7 September 2010. The Memorandum stated that exports of cotton could be made against valid Export Authorization Registration Certificates (EARCs) issued by the Textiles Commissioner, Mumbai. Guidelines for EARCs were issued under the Memorandum. Para 3 of the guidelines required each applicant to submit EARC applications in the form set out in Annexure I 'A', I 'B' or I 'C', as the case may be, accompanied by scanned copies of export contracts. The procedure was to take place online. The guidelines stipulated as follows:

(3.) THE First Petitioner applied for the registration of eleven contracts for export of cotton through the online registration facility of the Textiles Commissioner between 1 October and 10 October 2010. On 30 September 2010, a press note had been issued by the Textiles Commissioner notifying a decision taken by the Group of Ministers to the effect that actual exports would commence from 1 November 2010: the exportable surplus was quantified at 55 lac bales of raw cotton and there would be no registration after the exportable surplus was reached. The press note stated that the Textiles Commissioner would register contracts for the export of raw cotton for an aggregate quantity of 55 lac bales on a first come first served basis with effect from 1 October 2010 and a period of 45 days would be allowed for making shipments which would be reckoned from the date of issue of the EARC or 15 December 2010, whichever was later. The online application system was declared closed on 10 October 2010 as, according to the Textiles Commissioner, applications for 55 lac bales were received and no further applications could be accepted for registration.