BHILWARA EXPORTS LIMITED Vs. C VENKATARAMAN

JUDGEMENT

(1.) The question which arises for determination in this petition filed under Article 226 of the Constitution of India is whether the product "absorbent cotton uncarded" falls within the category "BB.l" and is entitled to cash subsidy of 15% of the F.O.B. value in respect of export of the product. The question is no longer res-in-tegra as Shri Justice Shah has answered it in the affirmative in judgment delivered in Miscellaneous Petition No. 1826 of 1979 on January 23,1980.

(2.) The petitioners are limited liability Company registered under the Companies Act. Between the period commencing from October 12,1976 to June 29,1977, the petitioners have exported absorbent cotton' of very large F.O.B. value to Japan pursuant to contracts for sale. The respondent No. 3 formulated a scheme of cash subsidy whereby the exporters of absorbent cotton wool' were to be granted a cash subsidy i.e. cash compensatory support equivalent to 15% of the F.O.B. value. The petitioners claim that they are entitled to the benefit of the said scheme as they have exported absorbent cotton uncarded'. The petitioners, accordingly, filed several applications for payment of cash before respondent No. 2. The respondent No. 2 called upon the petitioners to produce Customs attested copies of refund orders on export duty issued by the Customs Department. The applications for cash assistance were turned down by the Joint Chief Controller of Imports and Exports by his letter dated September 19, 1978. The petitioners were informed that their request cannot be considered as the export claimed was of absorbent cotton uncarded for which cash assistance is not admissible. The petitioners carried appeals before the Chief Controller of Imports and Exports, New Delhi, but those appeals were turned down and the petitioners were informed of its rejection by letter dated September 18, 1979. The appellate authority merely stated in the letter that the case has been carefully considered but no relief could be granted. The petitioners have thereafter filed the present petition in this Court on October 3,1980 under Article 226 of the Constitution of India and the relief sought is a direction to respondents Nos. 1 to 3 to cancel the orders rejecting the claim and for a further direction for granting to the petitioners cash compensatory support at the rate of 15% of the F.O.B. value of the exports of the absorbent cotton uncarded' made by the petitioners and specified in the petitioners' application mentioned in Ex. I. to the petition.

(3.) The petition was admitted by the learned Single Judge on October 27, 1980. Thereafter, the petitioners took out a Notice of Motion bearing Notice of Motion No. 19 of 1981 claiming that the hearing of the petition should be expedited and the respondents should be directed to deposit the amount which the petitioners are claiming in this Court during the pendency of this petition. The Notice of Motion was dismissed by the learned Single judge and the petitioners carried an appeal before the Division Bench of this Court. In view of the order passed by the Division Bench on March 20, 1981, the petitioners withdrew the appeal. The Divisional Bench directed that the petition should be disposed of early and should be posted for hearing on April 6, 1981. The main contention urged before the appellate Court was that in view of the decision of Shri Justice Shah in Miscellaneous Petition No. 1826 of 1979 decided on January 23, 1980, the claim made by the petitioners has to be granted. The Division Bench enquired from the respondents as to whether they would be willing to deposit the amount in Court and the petitioners could be given the liberty to withdraw it on furnishing security, but as the respondents declined to accede to that suggestion, the hearing of the petition was peremptorily fixed. Accordingly, the petition is set down before me for final hearing.