HINDUSTAN LEVER LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) In or about the month of January, 1983, the first petitioner entered into an Export Contract with USSR for the export of 1,000 Metric Tonnes of Taj Toilet Soap. The export value was 1.30 crores. Having secured the said export contract, the petitioners were entitled to and applied for an advance licence in terms of the policy for the period AM-83 to enable the petitioners to import raw materials and packing materials for fulfilling the said export order. On the anticipation of the receipt of the said advance licence, the petitioners went ahead and took necessary steps for the manufacture and export of Toilet Soap to the Russian buyer. Between the period from May 31, 1983 to July 29, 1983 the actual exports of 976 metric tonnes were effected. The petitioners had to make arrangements for raw materials from its available stocks of imported inedible tallow because, in order to start exports from May 1983 the petitioners could not wait for the actual issue of the advance licence which was issued only on April 28, 1983. The advance licence dated April 27, 1983 bearing No. P/L/2993850 was issued to the petitioners permitting imports of eight specified items of the CIF value of Rs. 79,94,800/- subject to the conditions attached thereto.

(2.) The petitioners, as per the terms of the said licence, had also executed a legal agreement with the Government of India. In other words the petitioners completely fulfilled their export obligation by July 31, 1983 even without arranging for any export and thus satisfied the condition of the said legal undertaking as contained in the said agreement.

(3.) In or about the month of August/September 1983, the Government of India completely banned the import and clearance of Tallow, as a result of which the petitioners could not place any orders for the import of Tallow under the said advance licence eventhough the said advance licence was valid upto April 1984.