1983 (9) TMI 286

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....;The petitioners purchase raw cotton and process it into Absorbent Cotton Wool, carded or uncarded. The process of manufacture is for removal of waxes to make cotton wool absorbent. The absorbent cotton wool by medical standards is stamped `B.P.' or `I.P.'. The absorbent cotton wool without these stamps is known in the trade market as `absorbent cotton wool, carded or uncarded'. In the year 1968, the respondents declared a cash subsidy scheme, under which the exporter is entitled to the cash compensatory support at 15% FOB value on certain items. Item `BBI' of the scheme reads `absorbent cotton wool'. The scheme was brought to an end on July 30, 1977, but the contracts registered prior to that date were not affected, by the scheme coming to....

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....llenge in this petition. 4. Shri Hidayatullah, learned Counsel appearing in support of the petition, apart from relying upon the two decisions of this Court cited hereinabove, advanced the following propositions : (i) The Judgment in Ajay Cotton was binding but has been disregarded in the impugned orders. (ii) There is no difference in Absorbent Cotton Wool ("ACW") and CW (Uncarded) in trade understanding which alone is the relevant criteria for classification for the purposes of the scheme. (iii) The Import Control Authority cannot limit the plain language of entry BBI adding the words "BP/IP" or the words `carded' after the words `Absorbent Cotton Wool'. (iv) The determination made by the classifica....

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....d. Shri Hidayatullah submitted that the only difference between the absorbent cotton wool carded or uncarded is degree of absorption and both continues to be absorbent cotton wool for all purpose. 6. Shri Parikh then relies upon the contents of paragraph 11 of the return and claims that both under the British Pharmacopoeia Code, 1973 and the Pharmacopoeia of India, 1966, absorbent cotton wool is described as having well carded cotton fibre amongst other characteristics. The learned Counsel urged that as the goods exported by the petitioners were uncarded cotton, it cannot be treated as an absorbent cotton wool and the benefit was rightly denied. It is not possible to accept this submission. The learned Counsel was unable to point ou....