SWASTIK OIL INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) IN this group of three petitions, the petitioners have challenged the action of the respondents in declining to grant duty draw back on the exports effected by the petitioners principally on two grounds. First ground being that the denial of draw back without assigning any reasons whatsoever is wholly arbitrary and secondly as per the policy decision taken by the Government, six exporters named in the petition who had exported similar goods have been granted draw back and the petitioners have been discriminated without any justification.

(2.) SINCE the issue raised in all these petitions are similar, they were heard together. For the sake of convenience, we have set out hereinbelow the facts in Writ Petition No. 3086 of 1988 and the decision in this petition will apply to the other two petitions.

(3.) THE petitioners are engaged in the manufacture of Caster Oil Medicinal B. P. (said goods for short) and also export it. In the year 1977, Item 1204 (b) was introduced to the Schedule to the Customs and Central Excise Draw Back Rules, 1971, wherein drugs, drugs intermediary and pharmaceuticals (liquids and drops) were made eligible for duty draw back. Caster Oil Medicinal B. P. was not specifically covered under the said Item 1204 (b ). However, some of the exporters of the said goods claimed duty draw back and the Government of India, after considering the issue decided to allow drawback on Caster Oil Medicinal B. P. under Sr. No. 1204 (b) at 2% F. O. B. value vide Finance Ministerys file No. 601/1201/121/77-DBK dated 28th March, 1979. The said decision of the Government of India was not published.