GANESH STEEL ROLLING MILLS Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ application was filed by the petitioner inter alia praying for a Writ of Mandamus commanding the respondent No. 2 for issuign a 'No Objection Certificate' in the form prescribed in Appendix IV-B of the Hand Book of Import & Export Procedure for the year 1985-88 forthwith entitling the petitioner No. 1 for an import licence of 7700 M.T. of raw-materials, re-rollable scrap as was permissible to be imported as on 14th July, 1986 in the name of the petitioner No. 1 for direct import and for certain other reliefs.

(2.) The fact of the case in short is that the commodity in question, namely, re-rollable scrap was a canalising item, which means, that those commodities can only be imported into India through the canalising agents only. In this case the canalising agent is, Metal Scrap Trade Corporation Ltd. The raw material was for manufacturing the resultant products, 'Carbon Steel Re-rollable Scrap' is comprehensive and covers in its perview structurals, plate cutting, billet -cutting etc. Since the raw material is not normally available indigenously, the Central Government has been making policy from time to time so as to permit the Actual Users like the petitioner to import such raw materials through the canalising agent and use the same as raw materials for its manufacturing activities. For the purpose of assessment of the requirements, the Central Government appointed assessment committee known as 'Technical committee' and the said technical committee was to assess the requirements of each of the units including the petitioners whose capacity was assessed to the time of 16,700 MTs per annum. The (petitioner No. 1 applied to the respondent No. 2 - Metal Scrap Trade Corporation Ltd. for allotment of imported carbon steel re-rollable scrap. In order to appreciate the facts of this case, it is necessary to set out the relevant provisions laying down the procedures in this behalf. Para 223(l)(a) of the Hand Book of the Import & Export Procedure 1985-88 provides that "Actual Users should send their requirements to the canalising agencies concerned by registered post. The canalising agencies will scrutinise such application and register the demand and ask for deposit of earnest money within 30 days from the date of application. In case the canalising agencies are not able to make such supplies, they will issue 'No Objection Certificate' in the from prescribed in Appendix IV-B of this Book at the time of registration of demand, i.e. the N.O.C. will be issued within a period of 30 days from the date of receipt of requirements for issue of an import licence directly in favour of such actual users. (b) In case the canalising agency is in position to make the supplies, they will send a communication to the Actual Users indicating the arrangement made by them for supplies of the registered demand. The supply of the goods should commence at least within 60 days from the date of receipt of earnest money. The said Hand Book also provided that the contingencies where the canalising agents registered the demand and the canalising agents could not deliver the material within the stipulated time. In this case it is not necessary to set out those provisions as those are not relevant for the present purpose.

(3.) It may be mentioned that para 215 of the said Book provides that Appendix V of the Import & Export Policy 1985-88 enumerates the list of canalised items. Those included in Appendix V, Part B, will be governed by the policy laid down by the Government in the administrative ministry concerned. In this case by the letter dated 15th June, 1986, the petitioner applied for allotment of 7700 M.T. of imported Carbon Steel Re-rollable Scrap. In the said letter it was pointed out that since the petitioners were the Actual Users of the Re-rollable Scrap, the petitioners should be exempted from the payment of earnest money deposited in the discretion of the said Corporation. This is specifically provided in para 216 of Chapter IV of the Hand Book of Import & Export Procedure for the year 1985-88. By the letter dated 21st June, 1986, the respondent No. 2 informed the petitioner that "which reference to your application No. MSTC/85-86 for demand registration for allotment of imported re-rollable scrap, it may pleased be noted that there has not been a decision for import of Carbon Steel Re-rollable Scrap during the year 1986-87". Thereafter, by the letter dated 13th August, 1986 the petitioner, inter alia, stated that "since the content of the letter is vague and not clear, we would like to know whether you have taken any decision upto the date of this letter or any decision will be taken of the near future to enable us to import raw-materials as per demand registered. Since we have been already in the 2nd quarter of the year and no import is arranged so far, the very spirit of the canalised policy of the Government of India have not been implemented. The Rolling Mills in the southern region are already suffering a lot without getting adequate raw materials comparing the other regions due to various regions like to non-availability mini/ major Steel Plant, ship breaking facilities etc."