SARJU INTERNATIONAL BOMBAY Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners are manufacturers and exporters of cotton ready made garments including T-Shirts, Children's clothing, Industrial Garments etc.

(2.) By a circular No. STT-36(1)/1620/78 issued by the Indian Cotton Mills Federation (respondent No. 2) on behalf of the first respondent - Union of India the 1st respondent announced its export assistance scheme for cotton textiles and goods made therefrom effective for the period 1st of April 1978 to 31st of March 1979. Under the scheme a cash assistance at the rates specified in that circular was announced on the F.O.B. value of the cotton goods so exported. The goods covered by the scheme are set out in the circular. Item 6 of the circular deals with cotton ready made garments including industrial garments and children's clothing and other items of ready made garments. The percentage of export assistance is also set out against these items.

(3.) On the basis of this export assistance scheme the petitioners entered into, inter alia, nine contracts all dated 21st August 1978 with foreign buyers for export of hosiery T-Shirts. These contracts were order Nos. 78248, 78249, 78345, 78241, 78239, 78173, 78233, 78240 and 78242. Pursuant to these contracts the goods were exported in the months of January and February 1979. Therefore the petitioners submitted to the second respondents their applications for cash assistance incentives under the said scheme in respect of the exports so effected. The petitioners however, have been denied the cash incentives prescribed under the scheme on the basis that under a Circular dated 6th January 1979, which is Exhibit 'N' to the petition the cash compensatory support on the cotton garments described therein has been discontinued with effect from 1st of January 1979. The petitioners have challenged the denial of the benefits of the cash incentive scheme to them in respect of these contracts. The 1st respondents have contended that they are entitled to withdraw this scheme at any time.