1991 (10) TMI 124 - HC - Customs

Summary

Issues: Interpretation of "specified brand name" for cash compensatory support (CCS) under circulars issued by the Spices Export Promotion Council.

The judgment by the High Court of Bombay involved a dispute regarding the interpretation of the term "specified brand name" in circulars issued by the Spices Export Promotion Council regarding cash compensatory support (CCS) rates for exporters of spices. The circulars specified different rates of CCS for spices exported under specified brand names and those without specified brand names. The petitioners argued that they were entitled to CCS at the higher rate of 10% for exporting spices under their own brand names, while the respondents contended that the brand names had to be specified by a governmental authority. The court noted that there was no specific governmental agency designated to specify brand names at the time of the circulars. The court considered whether "specified brand names" referred to brand names specified by exporters themselves. The court also addressed an interim order passed by a Single Judge, directing the respondents to provide CCS at 10% to the petitioners, pending the final disposal of the petition upon furnishing a bank guarantee. The respondents appealed against this interim order.

The court analyzed the arguments presented by both parties regarding the interpretation of "specified brand name." The petitioners claimed that they could specify their own brand names, entitling them to the higher rate of CCS. The respondents argued that the brand names had to be specified by a governmental authority. The court considered the lack of a designated authority for specifying brand names at the time of the circulars and discussed the possibility that exporters could indeed specify their own brand names. The court also addressed the argument that the government had the right to change its decision regarding brand names specified for CCS, noting that the respondents had not made any exports after the date of the interim order.

Ultimately, the court dismissed the appeal, upholding the interim order for providing CCS at 10% to the petitioners. The court did not grant any costs in the matter. The judgment clarified the interpretation of "specified brand name" in the context of the circulars issued by the Spices Export Promotion Council and provided a resolution to the dispute between the parties regarding the entitlement to cash compensatory support rates for spice exports.