PHOENIX MILLS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The issue involved in this petition stands concluded by the decision of Mr. Justice Shah in Miscellaneous Petition No. 1828 of 1979 decided on January 23, 1980. I have followed the decision of Mr. Justice Shah in Writ Petition No. 1192 of 1980, decided on April 22, 1981. Only few facts are required to be stated to appreciate the grievance of the petitioners.

(2.) The petitioners purchase raw cotton and process it into Absorbent Cotton Wool, carded or uncarded. The process of manufacture is for removal of waxes to make cotton wool absorbent. The absorbent cotton wool by medical standards is stamped 'B.P.' or 'I.P.'. The absorbent cotton wool without these stamps is known in the trade market as 'absorbent cotton wool, carded or uncarded'. In the year 1968, the respondents declared a cash subsidy scheme, under which the exporter is entitled to the cash compensatory support at 15% FOB value on certain items. Item 'BBI' of the scheme reads 'absorbent cotton wool'. The scheme was brought to an end on July 30, 1977, but the contracts registered prior to that date were not affected, by the scheme coming to an end. During the subsistance of the scheme, on January 10, 1974, local Classification Committee at Bombay recorded a finding that absorbent cotton wool included uncarded also and this decision was confirmed by Head Quarters Classification Committee at Delhi on December 2, 1974.

(3.) In pursuance of the scheme, the petitioners during the year 1977 exported absorbent cotton wool, carded and uncarded, of different F.O.B. value. The petitioners filed the requisite application before the Joint Chief Controller of Imports and Exports, claiming the benefit under the scheme. The Joint Chief Controller of Imports and Exports rejected the applications by separate orders in respect of different claims for different durations and those orders were confirmed in appeal. The petitioners preferred second appeal before the Government of India, and the Chief Controller of Imports and Exports by letter dated March 23, 1981 informed the petitioners that the products exported by the petitioners were not carded and therefore not an absorbent cotton wool in accordance with Indian Pharmacopoeia. The letter further recites that in some cases though the product was carded and confirmed the pharmacopoeia standards, it was sent in bales, and if sent in bales the product will have to be repacked in smaller containers after sterilization and therefore the product did not conform to the Indian Pharmacopoeia standards. These orders passed by the Chief Controller of Imports and Exports are under challenge in this petition.