1984 (7) TMI 86 - HC - Central Excise

Export - Cash Compensatory Support Scheme -Words and phrases - Cosmetics - Dictionary meaning

Summary

Issues:
Interpretation of the Cash Compensatory Support Scheme for exports of perfumed hair-oils and shampoo under two different schemes announced by the Government of India for the years 1978-79 and 1979-80.

Analysis:
The judgment pertains to a petition filed by two public limited companies, one engaged in manufacturing and exporting perfumed hair-oils and shampoo, and the other acting as an agent for exporting goods. The petitioners sought cash assistance under the subsequent Scheme announced by the Government of India for the year 1979-80, which was denied by the authorities. The key issue revolved around whether perfumed hair-oils fell under the category of "Cosmetics and Toiletries" specified in the subsequent Scheme for cash assistance.

The court analyzed the definitions of 'Cosmetics' and 'Toiletries' in common parlance and referred to various dictionaries to establish that perfumed hair-oils are commonly accepted as cosmetics and toiletries intended to beautify and improve the hair. The judgment highlighted that the common understanding aligns with the dictionary definitions of cosmetics, supporting the inclusion of perfumed hair-oils in the category of 'Cosmetics and Toiletries' for cash assistance under the subsequent Scheme.

Furthermore, the court referenced a Division Bench of the Allahabad High Court and the Government's Import Policy to reinforce the argument that perfumed hair-oils are considered cosmetics and toiletries. The judgment also addressed the contention raised by the respondents regarding the deletion of specific entries from the earlier Scheme, emphasizing that the exclusion of shampoo from the subsequent Scheme did not automatically exclude perfumed hair-oils. The court reasoned that if a general entry covers a particular product and is not specifically excluded, the exporters would be entitled to cash assistance under the subsequent Scheme.

Additionally, the court noted that an independent Export Promotion Council had concluded that perfumed hair-oils qualified for cash assistance under the subsequent Scheme, further supporting the petitioners' claim. Despite the absence of a specific order from the Ministry of Commerce regarding perfumed hair-oils, the court held that the interpretation of the scheme fell within its jurisdiction, and the petitioners were entitled to the cash assistance amount.

In conclusion, the court ruled in favor of the petitioners, directing the respondents to pay the petitioners the sum of cash compensatory assistance they were entitled to under the subsequent Scheme for the year 1979-80. The judgment emphasized the importance of a fair and just order to uphold the rights of the petitioners without costs and set a deadline for the payment to be made.