SANJAY KUMAR AGARWAL Vs. UNION OF INDIA

JUDGEMENT

(1.) This Petition is filed under Article 226 of the Constitution of India challenging the order dtd. 29/10/1993 passed by the Respondent No.2 whereby the Petitioner's application, for the period 3/7/1989 to 7/5/1991, for refund of Cash Compensatory Scheme (CCS) has been rejected primarily on the ground that 'Castor Oil First Special Grade' cannot be equated as 'Castor Oil Medicinal' for grant of benefit of CCS.

(2.) In 1964, the Ministry of Food and Agricultural, Government of India issued a Circular for the purpose of grading Castor Oil as 'Medicinal'. The grading was based upon the test to be conducted, which was known as 'Carbon Disulphide Test'. In 1966, Cash Compensatory Support Scheme was introduced to incentivize the exports from India. As per the said Scheme, the exporter would be entitled to certain cash compensatory amount on the export of the relevant goods. The said cash assistance for the present purpose was at the rate of 5% of FOB. This rate was prescribed by the Circular dtd. 31/3/1989 issued by the Government of India, Ministry of Commerce. The relevant entry 97 read as 'Castor Oil Medicinal'. The said Circular further stated that the rates prescribed for cash compensatory would be applicable from 1/4/1989 to 31/3/1992.

(3.) On 23/6/1989, Government of India, Ministry of Agricultural superseded its Circular dtd. 3/10/1964 which provided for the test to be conducted. As per 23/6/1989, the test was changed to 'Thin-Layer Chromatographic Test' (TLC) for identification of Castor Oil of Medicinal grade. The Petitioner conducted the new test i.e. TLC test. However, same good i.e. 'Castor Oil Medicinal' was graded as 'Castor Oil First Special' after undergoing new test although the Petitioner had protested against the introduction of the new test.