Skip to content


ishwar Dayal JaIn Vs. Chief Controller of Imports and Exports - Court Judgment

SooperKanoon Citation

Subject

Customs

Court

Delhi High Court

Decided On

Case Number

C.W. 869 of 1987

Judge

Reported in

1988(37)ELT338(Del)

Acts

Constitution of India - Articles 14 and 19(1)

Appellant

ishwar Dayal Jain

Respondent

Chief Controller of Imports and Exports

Excerpt:


.....'c') provided that export will be allowed to the established exporters on pro-rata basis to the extent of their entitlement on the basis of 'best year's exports'.2. the grievance of the petitioner is that his 'best year's export' was in 1985-86 when he exported 1,60,180 pieces of peacock tail feathers and consequently for the year 1986-87 he was entitled to the allocation of quota on the basis of the said export. it was not disputed that the quota to the established exporters was to be allocated no pro-rata basis to the extent of their entitlement on the basis of 'best year's exports'.it was, however, contended that the criteria for working out 'best year's exports' was laid in export instruction no. according to these instructions the best year's exports to be taken into consideration were the exports made by an applicant during one of the three basic years ending september, 1987, namely (i) october, 1964-september, 1965; (ii) october, 1965-september, 1966; and (iii) october, 1966-september, 1967. according to these guidelines best year's exports of the petitioner were 87,600 pieces as against the total quantity of 35,49,400 pieces. 4. learned counsel for the petitioner..........'c') provided that export will be allowed to the established exporters on pro-rata basis to the extent of their entitlement on the basis of 'best year's exports'. 2. the grievance of the petitioner is that his 'best year's export' was in 1985-86 when he exported 1,60,180 pieces of peacock tail feathers and consequently for the year 1986-87 he was entitled to the allocation of quota on the basis of the said export. the respondents, however, had allowed quota on the basis of the export during the year 1981-82 which act was arbitrary, illegal and vocative of his fundamental rights under article 14 and 19(1)(g) of the constitution of india. on these averments he seeks a writ of mandamus directing the respondents to modify the allotment letter dated 30th may, 1986 allocating the ceiling limit to which the petitioner was entitled to export peacock tail feathers in the year 1986-87 and to determine the ceiling limit with reference to the export made by the petitioner in the year 1985-86. 3. the respondents resisted the claim of the petitioner. it was not disputed that the quota to the established exporters was to be allocated no pro-rata basis to the extent of their entitlement.....

Judgment:


G.C. Jain, J.

1. The petitioner, Shri Ishwar Dayal Jain (since deceased), was an established exporter of peacock tail feathers. He was carrying on this business for the last 20 years in the name and style of M/s. Jain Traders, Sadar Bazar, Delhi. The Ministry of Commerce prescribed a ceiling for the export of this item each year. On the basis of the said ceiling a quota for exporting this item was allocated to the established exporters and other categories by the Chief Controller of Imports and Exports/Joint Chief Controller of Imports and Exports, New Delhi, Bombay, Calcutta and Madras. The allocation was made on the basis of 'Export Instructions'. Relevant Export instruction No. 2/86-87, dated 6th May, 1986 (Annexure 'C') provided that export will be allowed to the established exporters on pro-rata basis to the extent of their entitlement on the basis of 'best year's exports'.

2. The grievance of the petitioner is that his 'best year's export' was in 1985-86 when he exported 1,60,180 pieces of peacock tail feathers and consequently for the year 1986-87 he was entitled to the allocation of quota on the basis of the said export. The respondents, however, had allowed quota on the basis of the export during the year 1981-82 which act was arbitrary, illegal and vocative of his fundamental rights under Article 14 and 19(1)(g) of the Constitution of India. On these averments he seeks a writ of mandamus directing the respondents to modify the allotment letter dated 30th May, 1986 allocating the ceiling limit to which the petitioner was entitled to export peacock tail feathers in the year 1986-87 and to determine the ceiling limit with reference to the export made by the petitioner in the year 1985-86.

3. The respondents resisted the claim of the petitioner. It was not disputed that the quota to the established exporters was to be allocated no pro-rata basis to the extent of their entitlement on the basis of 'best year's exports'. It was, however, contended that the criteria for working out 'best year's exports' was laid in Export Instruction No. 24/68, dated 25th April, 1968 which was still in force and had not been withdrawn. According to these instructions the best year's exports to be taken into consideration were the exports made by an applicant during one of the three basic years ending September, 1987, namely (i) October, 1964-September, 1965; (ii) October, 1965-September, 1966; and (iii) October, 1966-September, 1967. According to these guidelines best year's exports of the petitioner were 87,600 pieces as against the total quantity of 35,49,400 pieces. The petitioner had been allocated quota on this basis throughout and for the year 1986-87 also the quota had been allocated to him on that basis.

4. Learned counsel for the petitioner contended that the term 'best year's exports' can in no way be interpreted as exports made in the three years preceding the year ending September, 1967 and the interpretation adopted by the respondents was palpably wrong. Our attention was drawn to the Export Instruction No. 41/85, dated 1st June, 1985 (Annexure A) relevant portion of which reads : 'As regards category No. 4, export will be allowed to established exporters on pro-rata basis taking into account the best year's export of the last three licensing years'. On the basis of these trade instructions, argued the learned counsel for the petitioner, the best year's exports were the exports made during any of the three years preceding the year ending September, 1986.

5. We have carefully examined this contention but we do not find much merit in the same. The export instruction No. 24/68, dated April 25, 1968 (Copy Annexure R-1) provides : 'basis for working out the best year's exports by Joint Chief Controllers of Imports and Exports would be the exports made by an applicant during any one of the three basis years ending September, 1967 selected by him i.e. (a) October, 1964 - September, 1965; (b) October, 1965 - September, 1966; and (c) October, 1966 - September, 1967'. These instruction, which are still in force, made it clear that 'best year's exports' mean best exports made in any of the three years ending September, 1967. It was urged on behalf of the petitioner that this basis was laid down in April, 1968 and could not govern the allocation for future exports. This, however, cannot be accepted. There is no material on the record to show that this criteria was ever withdrawn. The respondents have produced a chart (Annexure R2) showing that the petitioner was always allocated the quota worked out at 87,600/35,49,400 of the ceiling prescribed by the Ministry of Commerce i.e. on the basis of the criteria laid down in the Export Instruction No. 24/68, dated 25th April, 1968.

6. The respondents have also produced on record copy of a letter dated 18th September, 1985 (Annexure R-3) from the (Established Shippers) Association of Peacock Tail Feathers to Chief Controller of Imports and Exports, New Delhi. The petitioner is admittedly a member of this Association. In this letter the Association stated 'There are 27 members of this Association who are getting quota of peacock tail feathers and articles made there from regularly since 1968-69 on pro-rata basis of their best year's exports selected by them out of the prescribed basic period fixed by the Government. The prescribed basic period fixed by the Government was three years ending 30th September, 1967 as up to the year 1967 the licensing year for peacock feathers was from 1st October to 30th September of the subsequent year. Our member-exporters had selected best year out of the prescribed basic period of three years ending 30th September, 1967 and this fact is verified by the concerned port licensing authority from the documentary evidence such as bill of lading etc. produced by the established exporters'.

7. This letter shows that it was the case of the Association itself, of which the petitioner was a member, that the term 'best year's exports' meant the best exports made in any of the three years ending 30th September, 1967, as is the plea of the respondents. In presence of this letter the contention of the petitioner that the 'best year's exports' meant the best exports made in any of the preceding three years could not be accepted.

8. No doubt, in Export Instruction No. 41/85, dated 1st June, 1985 (Annexure A) it was stated that 'export would be allowed to established exporters on pro-rata basis taking into account the best year's export of the last three licensing years'. As contended by learned counsel for the respondents, the words 'of the last three licensing years' appear to have crept in by inadvertence or due to some mistake. It is clear from the letter dated 19th June, 1986 addressed by the petitioner to the Joint Chief Controller of Imports and Exports, New Delhi (Annexure E). In this letter the petitioner himself had stated that the export was to be allowed to the established exporters on pro-rata basis to the extent of their entitlement on the basis of best year's exports. It was not his case that the best year's exports were exports of the last three years. The statement contained in Export Instruction No. 41/85, dated 1st June, 1985, thereforee, is of not much consequence.

9. Moreover, the quota for 1986-87 has already been allocated to all established exporters on the basis of the criteria laid down in Export Instruction No. 24/68, dated 25th April, 1968. We find no justification for upsetting all these allocations.

10. In conclusion we find no merit in the petition and dismiss the same. The parties are, however, left to bear their own costs.


Save Judgments// Add Notes // Store Search Result sets // Organize Client Files //