Export promotion scheme promises are enforceable when acted upon; import entitlement cannot be reduced without fair enquiry.

An export promotion scheme can create an enforceable governmental obligation where exporters act on the representation to their detriment, so promised import entitlement equal to the full f.o.b. value cannot be withdrawn arbitrarily. Any power to reduce that entitlement must be exercised only after a fair enquiry, with disclosure of adverse material and an opportunity to respond. A reduction made on ex parte material without such process is invalid, and the exporters remain entitled to the full import certificates unless a proper determination is made under the scheme.

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Issues: Whether the Export Promotion Scheme created an enforceable obligation on the Government to grant import entitlement equal to 100% of the f.o.b. value of exports, and whether reduction of that entitlement without a fair enquiry was valid.

Analysis: The Scheme held out a specific representation that exporters who complied with its terms would receive import entitlement equal to the full f.o.b. value of the exports. The Court treated the Scheme as creating an obligation that could not be disregarded at the Government's mere discretion once exporters had acted on it to their detriment. Although the Textile Commissioner was empowered under clause 10 to investigate and reduce entitlement where the declared value was higher than the real value, that power had to be exercised after an enquiry consistent with justice and fair play. The reduction in entitlement was made on ex parte material, without disclosure of the adverse material and without giving the exporters an opportunity to explain it.

Conclusion: The reduction of the import entitlement was invalid, and the exporters were entitled to receive import certificates for the full value of the exports unless a proper determination was made under clause 10 of the Scheme.

Ratio Decidendi: A governmental representation in an export promotion scheme, acted upon by exporters to their detriment, binds the Government in equity and cannot be defeated by arbitrary administrative action; any power to reduce the promised benefit must be exercised only through a fair enquiry and in accordance with natural justice.

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