BAKER GAUGES INDIA LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The 1st petitioner is carrying on business of manufacturing Precision Screw Gauges and are an export oriented company where 50% of their production is exported. For the purpose of manufacturing procedure Precision Screw Gauges they needed to import a second hand Plain Thread Grinding Machine" from U.K. In the Import Export Policy of April 1988 to March, 1991 Thread Grinding Machines were listed at Serial No. 128 of Appendix I Part B, which Appendix covered "Capital Goods allowed under Open General Licence". Para 30(1) of Chapter 3 of the Import and Export Policy reads as under:

(2.) In pursuance of the aforesaid policy the 1st petitioner had requested M/s. John Parker Machine Tools Ltd., U.K., who are specialists in new and used machine tools to give a quotation for a second hand Plain Thread Grinding Machine. By letter dated 4th January, 1990 M/s. John Parker Machine Tools Ltd., U.K., placed order for the aforesaid machine. The petitioners thereafter opened an irrevocable Letter of Credit through their bankers The Union Bank of India. The Letter of Credit was opened on 26th February, 1990 and was valid till 17th March, 1990. As M/s. John Parker Machine Tools Ltd., U.K., could not send the aforesaid machine within the period of the Letter of Credit on application to their bankers the Letter of Credit was extended firstly till 24th March, 1990 and subsequently on further request till 31st March, 1990. The petitioners by letter of 30th March, 1990 applied for further extension upto 30th April, 1990 as M/s. John Parker Machine Tools Ltd., U.K.; were still not able to ship the said machine.

(3.) On 1st April, 1990 the new Import Policy for April, 1990 to March, 1993 was introduced. By this policy all second-hand machines were removed from the OGL List. The petitioners relied on para 9 of OGL Order No. 2/8891 issued on 30th March, 1988 as further amended by the I.T.C. Order No. 598891 dated 10th January, 1990 the Import and Export Policy provided as under :