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TMI Blog1982 (11) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... ed with the Gem and Jewellery Export Promotion Council. The concern imports rough diamonds from abroad and after processed and polished in India by small manufacturers, exports the diamonds to buyers in various countries such as Belgium, United States of America, Hong-kong etc. 2. Respondent No. 1-Union of India declared its Import Policy April 1978-March 1979 and under the said Policy framed a scheme for registration of Export Houses as per the contents of Chapter 19 of the Policy. The object of the scheme was to grant special facilities to export houses to strengthen their negotiating capacity in foreign trade and to build a more enduring relationship between them and their supporting manufacturers. Export Houses, which are able to ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cate as all the required conditions were satisfied and the reason furnished by letter dated August 30, 1978 was totally foreign to the policy announced by the Government. The petitioner did not receive a favourable reply and ultimately preferred the present petition on June 28, 1979 under Article 226 of the Constitution of India. The petitioner claims that the order dated August 30, 1978 declining to grant certificate should be quashed and a writ of mandamus should be issued against respondent No. 2 to issue to the petitioner the Export House Certificate under the Import Policy of April 1978-March 1979. 4. In answer to the petition, on behalf of the respondents, Shri V.S. Rawat, Deputy Chief Controller of Imports Exports, has filed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the 81 firms, who had requested for grant of Export Houses Certificates in the year 1978-79 have been granted certificates, it would have caused loss of a substantial amount to the Government and that could not be the intention of the Government policy to give facility to the export houses, and therefore, the certificate of Export House was denied to the 80 exporters who desired to export cut and polished diamonds. The petitioner has filed an affidavit-in-rejoinder sworn on April 14, 1982 denying the claim made by the respondents and pointing out that there are at least four parties to whom Export House Certificates were granted without diversification of export in the year 1977-78. 5. Shri Desai, learned counsel appearing on behalf of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould have caused substantial loss to the Government in the loss of foreign exchange. The respondents for the first time have stated in their affidavit that grant of export house certificate to the exporters of diamonds would result in granting them replenishment licence for more than 100% and the respondents claimed that as the replenishment licence would be more than 100%, it was felt that the application for export house certificate should be turned down. In the first instance, the return does not state that it was the policy of the Government to turn down ail applications for grant of export house certificate in respect of all items where the replenishment licence may exceed 100%. I inquired from Shri Paranjpe as to whether there are any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s have stated in paragraph 21(f) of the return that it could not be the intention of the Government policy to give facilities to an export house to the extent when there is no net earning of a foreign exchange. It hardly requires to be stated that the policy of the Government must reflect in the scheme and not what is felt by the officer who has filed the return. In my judgment, the rejection of application of the petitioner for grant of export house certificate was without any basis and the petitioner is entitled to the relief in this petition. It is not in dispute that except the ground mentioned by the Controller in the letter dated August 30, 1978 there is no objection on the part of the respondents to refuse the certificate, because ot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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