1981 (4) TMI 107

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....y 23,1980. 2. The petitioners are limited liability Company registered under the Companies Act. Between the period commencing from October 12,1976 to June 29,1977, the petitioners have exported 'absorbent cotton' of very large F.O.B. value to Japan pursuant to contracts for sale. The respondent No. 3 formulated a scheme of cash subsidy whereby the exporters of 'absorbent cotton wool' were to be granted a cash subsidy i.e. cash compensatory support equivalent to 15% of the F.O.B. value. The petitioners claim that they are entitled to the benefit of the said scheme as they have exported 'absorbent cotton uncarded'. The petitioners, accordingly, filed several applications for payment of cash before respondent No. 2. The respondent No. 2 calle....

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....the hearing of the petition should be expedited and the respondents should be directed to deposit the amount which the petitioners are claiming in this Court during the pendency of this petition. The Notice of Motion was dismissed by the learned Single judge and the petitioners carried an appeal before the Division Bench of this Court. In view of the order passed by the Division Bench on March 20, 1981, the petitioners withdrew the appeal. The Divisional Bench directed that the petition should be disposed of early and should be posted for hearing on April 6, 1981. The main contention urged before the appellate Court was that in view of the decision of Shri Justice Shah in Miscellaneous Petition No. 1826 of 1979 decided on January 23, 1980, ....

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....of the local Classification Committee was given some time in January 1974. The question was also considered in the Classification Committee at the Head quarter at New Delhi and the copy of the minutes produced by the petitioners of the meeting dated December 24,1974 indicates that 'absorbent cotton uncarded' was considered as an item falling under class of 'absorbent cotton wool'. It is not in dispute that in accordance with this decision taken by the Committee, cash assistance was given to the exporters of absorbent cotton uncarded. The scheme was withdrawn by the Government of India on July 30, 1977. 5. Shri Bhabha submits and with considerable merit that all along the Department and the trade in general had considered 'absorbent cotton ....