JINDAL DRUGS LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) RULE . Respondents waive service. By consent, Rule made returnable forthwith. This judgment deals with the issues arising in both the above matters. Essentially, the controversy arises as a result of a claim for export benefits for the period from 1st April, 2004 onwards under the Vishesh Krishi Upaj Yojana ('the Yojana/VKUY') declared under the Trade Policy for the period from 2004 -2009 ("Policy"). The Yojana proposed to grant duty credit scrips equivalent to 5% of the FOB value of exports for each licensing year commencing from 1st April, 2004. The scrips and the items imported under them were to be freely transferable. The petitioners who are exporters of Menthol and Mentha Oil have been denied the benefit of the said Yojana inter alia as a result of the impugned circular dated 28th February, 2006 on the principal grounds raised in the petitions.

(2.) THE Petitioners are limited companies and doing the business of export of Menthol and Mentha Oil and the Respondents are the Union of India and Joint Director of the Foreign Trade and the concerned officers of the Director General of Foreign Trade (DGFT).

(3.) BEFORE proceeding further, it would be appropriate that we examine the features of the Yojana which was introduced with the stated objective of promoting exports of fruits, vegetables, flowers and minor forest produce in the year 2004. As a matter of policy, in each subsequent year, the items eligible for the benefits under the Yojana were increased or altered. In some cases, it became more descriptive. The Petitioners were given benefit of the Yojana only from 1st April, 2007 as a result of the fact that the product exported by the Petitioners was specified for the first time vide policy circular dated 28th February, 2006.