NEON LABORATORIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioners seek to challenge the impugned order dated 12th May, 1999 passed by the Joint Director General of Foreign Trade, Mumbai whereby the exports made by the first petitioner vide six shipping bills from 27th February, 1996 to 5th November, 1996 were held not covered by the provisions of the Pass Book scheme.

(2.) NEON Laboratories Limited - the first petitioner is a company registered and incorporated under the provisions of the Companies Act, 1956. The second petitioner is one of the directors of the first petitioner - company. Hereinafter we shall refer the petitioners as Neon. Neon claims to be engaged in the manufacture of Hi-Tech Parentals and Pharmaceutical formulations since 1984. It has its own plant for manufacture of injectable and oral preparations. It claims to be specialised in Anaeshetic and Anti Cancer drugs. Neon applied for Pass Book under the Pass Books Scheme, Export and Import Policy, 1992-1997. On 23rd August, 1995, the Pass Book is said to have been issued immediately thereafter. Neon after the issuance of the said Pass Book exported their products as under: <FRM>JUDGEMENT_289_TLMHH0_2006Html1.htm</FRM>

(3.) NEON applied to the Designated Authority of Pass Book Scheme - respondent No. 3 (hereinafter to be referred to as the Designated Authority) on 14th March, 1997 for necessary endorsement in the Pass Book regarding credit of duty available on it in respect of above referred exports. On 30th August, 1998 the office of Designated Authority made an endorsement, Loan Licence is not allowed. Neon took up the matter with the Designated Authority. However, the Designated Authority on 30th August, 1998 again made an endorsement, correctly rejected. Neon filed a writ petition before this Court bearing Writ Petition No. 969 of 1999. The Division Bench by its order dated 12th April, 1999 set aside the endorsement and directed the Designated Authority to clear the Neon and passed a speaking order. Pursuant to the orders of the Division Bench, the Designated Authority heard Neon and by its order dated 12th May, 1999 rejected the Neons claim of credit in the Pass Book Scheme.