2002 (12) TMI 550 - HC - Customs

High Court Orders Retroactive Cash Compensatory Support for Exporters

The High Court directed the Respondents to grant Cash Compensatory Support (CCS) at 10% for exports made from 1st July, 1986 to 12th February, 1987, and ... Export - Cash Compensatory Support (CCS) Issues:Challenge to circular reducing Cash Compensatory Support (CCS) on export of spices and requirement of brand name registration for availing CCS.Analysis:The petitioners challenged two circulars issued by the Respondents regarding CCS on export of spices under brand names in packs of 1 Kg. or less. The first circular reduced CCS from 10% to 7% with retrospective effect from 1st July, 1986. The second circular required brand name registration with the Spices Board to avail 10% CCS from 16th July, 1987. The High Court heard both petitions together and delivered a common judgment.The Court noted that the Respondents announced schemes to encourage exports, including CCS. Initially, CCS was fixed at 10% for spices exported after 1st July, 1986. Subsequently, a circular reduced it to 7% with retrospective effect. Another circular required brand name registration for availing 10% CCS. The petitioners challenged these actions, claiming entitlement to CCS at the rates specified in a previous judgment.Regarding the validity of the circular reducing CCS to 7%, the Court referred to a previous judgment and directed the Respondents to grant CCS at 10% for exports made from 1st July, 1986 to 12th February, 1987, and at 7% for exports from 13th February, 1987 to 15th July, 1987. The Court applied the same ruling to the present case, granting the petitioners CCS at the specified rates.Regarding the requirement of brand name registration for availing 10% CCS, the Court analyzed the circular dated 16th July, 1987. It held that brand name registration was not a condition precedent for CCS at 10%. Once the brand name was registered with the Spices Board, exports from 16th July, 1987 would be entitled to 10% CCS. The Court rejected the Respondents' argument that CCS at 10% could only be claimed from the date of brand name registration, holding that the petitioners were entitled to CCS at 10% from 16th July, 1987.In conclusion, the Court allowed both petitions, directing the Respondents to compute and pay the balance amount of CCS to the petitioners within three months. The petitioners were granted CCS at 10% from 1st July, 1986 to 12th February, 1987, at 7% from 13th February, 1987 to 15th July, 1987, and at 10% from 16th July, 1987 onwards. The petitions were disposed of with no order as to costs.