VIBGYOR TEXTILE INTERNATIONAL Vs. UNION OF INDIA

JUDGEMENT

(1.) The question that is to be determined is whether the petitioner in these petitions are entitled to cash assistance under the Export Assistant Scheme for Cotton Textiles announced by the Union of India, the 1st respondent, for the period between 1st April 1978 and 31st March 1979.

(2.) The petitioners are manufacturers and exporters of cotton ready- made garments. The said Scheme was introduced with a view to induce exporters to export the textiles covered thereby and give them the incentive of replenishment licences or cash assistance. The cash assistance is given by the first respondent through the Indian Cotton Mills Federation, the 2nd respondent.

(3.) By a circular dated 19th April 1978 the second respondent announced the said Scheme and gave therein the rates of cash assistance admissible on the export of textiles effected during the stated period. In regard to industrial garments and children's clothing the rate of cash assistance was 12.5% of the f.o.b. value of the exports and 7.5% in regard to other ready-made garments. The last sentence of the circular stated, "It may further be noted that this circular is being issued on the understanding that no binding obligation of any nature is cast upon the Federation".