2000 (8) TMI 935 - HC - Central Excise

Summary

Issues:
Challenge to the introduction of quota transfer system - Electronic Transfer System (ETS) under Societies Registration Act. Validity of Government policy on PPE, NGE, and NIE transfers through Apparel Export Promotion Council. Judicial review of the ETS scheme. Interference with interlocutory order. Allegations of mala fide and grave miscarriage of law. Impact on small exporters. Transparency and efficiency of the ETS scheme. Future considerations for policy-making.

Analysis:
The Writ Appeals were filed challenging the order of the single Judge regarding the ETS scheme introduced under the Societies Registration Act. The Government policy on PPE, NGE, and NIE transfers through the Apparel Export Promotion Council was questioned. The Government's competence to frame policies based on public requirements and international agreements was emphasized. The appellant argued that the policy was not subject to judicial review and exporters had no inherent rights beyond the policy framework. Legal precedents were cited to support the Government's authority in policy-making and modification.

The respondents contended that the ETS scheme had flaws, causing delays and financial burdens on purchasers. They highlighted the necessity for service charges, advance payments, and time constraints in the scheme. The argument was made that the Government's appeal against the interlocutory order came too late, as the scheme was set to end soon. The respondents emphasized the impracticalities and disadvantages of the ETS scheme in its current form.

The Court considered the arguments from both sides, emphasizing the limitations on judicial interference with government policies. The Court noted that unless there were exceptional circumstances or mala fide intentions, judicial review of policy decisions was not warranted. The Court rejected the notion that export entitlement was an absolute right and found no evidence of mala fide actions in the case. The Court upheld the Government's authority to implement the ETS scheme and emphasized the importance of transparency and efficiency in the policy.

The Court concluded that while some inconveniences were raised regarding the ETS scheme, they were not sufficient grounds for judicial intervention. The Court highlighted the need for future policy considerations based on relevant factors and national interests. The Court disposed of the writ appeals, allowing mutual transfers until the scheme's end in September 2000, without setting a precedent for future schemes. The Court urged the Government to make future policy decisions in accordance with the law and the interests of all stakeholders.