TMI Blog1985 (1) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... r 1981. Initially, they had a provisional certificate for registration as a small scale industrial unit from the Director of Industries, U.P., up to November 1982. The said certificate was renewed from time to time. A permanent certificate was issued in favour of the petitioners as an S.S.I. Unit by the Director of Industries, U.P. on 20th June, 1984. 3. The petitioners applied for an Export House Licence as Manufacturers for the year 1984-85. On 21st June, 1984, the Chief Controller of Imports and Exports rejected the petitioners application on the ground that the certificate from the Director of Industries was a provisional certificate and its validity was only up to 13th November, 1982. The Chief Controller of Imports and Exports held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even in this letter the fact that the petitioner had already obtained the permanent certificate as a small scale industrial unit from the Director of Industries, U.P. was neither considered nor even adverted to. Under these circumstances, the petitioner has filed the present petition. 4. Prayer (B) in the petition is for directing the first respondent to grant the petitioner an Export House Certificate in the capacity of Manufacturer-Exporter-SSI Unit for the year 1984-85. Prayers (C), (D) and (E) are for the consequential benefits and reliefs to which the holder of the Certificate is entitled according to the relevant Import-Export Policy. Prayer (A) is for quashing the impugned orders dated 21st June, 1984 and 26th February, 1985. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of Appendix 16. In sub-clause (b) of sub-para (2) of Para 176 of the Import Policy, it is laid down that the prescribed minimum of the annual average FOB value of exports shall be only Rs. 50 lakhs and Rs. 2 crores respectively in the case of a small scale industrial unit, registered with the concerned Director of Industries before 1-4-1984 or a consortium of small scale units. It may be noted that so far as the small scale industrial units were concerned, the annual requirement of the Policy was that the export of the manufacturing exporter must be at least Rs. 50 lakhs. Sub-clause (e) of sub-para (2) of Para 176 of the Import Policy further liberalised the requirement by providing that the export in each one of the three years cover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 21st June, 1984, the Chief Controller of Imports and Exports had only stated that the S.S.I. certificate in favour of the petitioner had expired on 13-11-1982 and had certified them as non-Manufacturers on that date. This letter was in reply to the correspondence carried on by the petitioner ending with letter dated 11-6-1984. The Chief Controller of Imports and Exports, however, ignored the fact that the said registration certificate was being renewed and was, in fact, renewed for a period of six months. The last such renewal of the registration certificate was done up to May 1984 and a permanent certificate was issued in June, 1984. However, immediately after the receipt of the letter, the photostat copy of the permanent registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30-6-1984 or up to 30-6-1983 or up to 30-6-1982. The requirement for such renewal is that the exporter must show the annual average growth of at least 20 per cent in the prescribed base period or in the immediately preceding year. The reason for this requirement is quite obvious. If special concessions are to be obtained by the exporters who are only traders, they must demonstrate that they are making special efforts for export promotion and earning in at least 20 per cent more foreign exchange. The authorities went wrong in taking the petitioner s application as an application for renewal and then insisting on the conditions imposed by Para 180 of the Policy. The reasons given in the order dated 28-2-1985 that the Export House Scheme will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... city with their foreign counterparts. A sustained trade relationship would be possible more where the exporter is himself a manufacturer. The reasons stated in the two impugned orders of the respondents are wholly irrelevant and not germane to the Scheme of Chapter 18. This is also the reason for the impugned orders being bad in law. 9. For the reasons stated above, the impugned orders dated 21-6-1984 and 28-2-1985 are invalid and are quashed. The Petitioner satisfies the requirements of Para 176 of the Import-Export Policy of the Year 1984-85. Respondent No. 1, the Chief Controller of Imports and Exports is directed to issue an Export House Certificate to the petitioner in the capacity of Manufacturer Exporter-SSI Unit for the year 198 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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