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TMI Blog2015 (9) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly. - Writ Petition (L) No. 1904 of 2015, Writ Petition (L) No. 1905 of 2015 - - - Dated:- 3-8-2015 - S. C. Dharmadhikari And G. S. Kulkarni, JJ. For the Appellants : Mr V Sridharan, Senior Adv. With Mr Yogesh Patki Ms Poorva Garg Ms Parikshit Barpujari For the Respondent : Mr Pradeep S Jetly With Mr Parag A Vyas JUDGMENT P. C. 1. On 20.7.2015 after hearing both learned Counsel, we had passed the order that the Directorate General of Hydrocarbons, Ministry of Petroleum and Natural Gas, Government of India and who has issued the Essentiality Certificate be impleded as a party respondent. We have also indicated in our order that after the amendment is carried out in the Writ Petition, the petitioners' undertaking given to this Court on 2.7.2015 be also forwarded to all parties. 2. This order was complied with on 27.7.2015 and that is how the petitions have been placed today for passing final orders. In these two petitions a drill ship and a rig respectively have been brought in by the petitioners and in order to fulfill the obligation under the contracts with the Oil and Natural Gas Commission. 3. The petitioners were required to file the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout permission of respondent no.3/respondent no.4. Ordinarily this undertaking would have sufficed, but we have also directed impleadment of Directorate of Hydrocarbon under the Ministry of Petroleum and Natural Gas, Government of India and if it is filing an affidavit, same will also be considered. 9. Now that affidavit has also been placed before us by Mr.Jetly and which clarifies that as provided under the Notification No.12 of 2012 of the Customs dated 17.3.2012, and which is in force till today under Serial No.359 under Table List 13 and condition No.44 an Essentiality Certificate was issued in favour of ONGC on 4.11.2014. The ONGC which is an operator of the block applied for no objection certificate for addition of blocks in this Essentiality Certificate and that correspondence is also produced alongwith this affidavit. At 'Annexure A' to the affidavit dated 31.7.2015 is a letter of ONGC to this Directorate of General that clarifies as to how the ONGC is going to mobilise the drill ship and how the blocks are needed to be added. On 6.7.2015 the Essentiality Certificate with the stated addition has been issued by this Directorate, a copy of which is at 'Annex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ably, they were entitled to the benefit of the exemption notification subject, of course, to the condition that they would produce the essentiality certificate granted by the Directorate General of Hydrocarbons at the time of importation of goods. Grant of essentiality certificate was not in the hands of the assesses. It was a function of a department of the Central Government. The essentiality certificate admittedly was not granted by the Directorate General of Hydrocarbons within a reasonable time. The importers could not be blamed therefor. It is possible that delay in granting the said essentiality certificate was by way of default on the part of the authorities concerned. 24. The essentiality certificate granted in favour of ONGC refers to the notification, the relevant certificate number of the table, list 11 and condition number 34 or 36, as the case may be, of the notification. It even refers to the serial number of the consignments. The serial number of the tapes had also been mentioned therein. Except for the purpose of grant of benefits under the said exemption notification, the said essentiality certificate would not serve any other purpose whatsoever. 25. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peditiously as possible but they did not choose to do so probably having regard to the fact that no time schedule therefor was prescribed. It is trite that when a public functionary is required to discharge its public functions within a time specified therefor, the same would be construed to be directory in nature. [See P.T. Rajan Vs. T.P.M. Sahir and Others, (2003) 8 SCC 498 and Punjab State Electricity Board Ltd. Vs. Zora Singh and Others, (2005) 6 SCC 776]. 29. Both the Customs Department and Ministry of Petroleum and Natural Gas are departments of the Central Government. The substantive provisions which were required to be complied with for the purpose of obtaining the benefits under the said exemption notification have indisputably been complied with. It is not the case of the department that the assesse has anything to do with the grant of certificate except to pursue the matter to the best of its abilities. It is not in dispute that the importers were, but for production of the certificate, otherwise entitled to the grant of benefit in terms of the said notification. 30. The conditions referred to in Subsection (1) of Section 25 as regard time when such certifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecause of any administrative delay over which he had no say in the following words: ..... In a case of this nature it is only reasonable to take the view that the benefit of exemption will accrue to a unit found to be a smallscale industrial unit from the date on which the application was made for the grant of registration certificate. Such a unit should not be deprived of the benefit to which it is otherwise entitled as a smallscale industrial unit merely because the authorities concerned took their own time in disposing of the application. We therefore, agree with the majority view of the Tribunal and hold that the benefit of exemption under the notification in question should be extended to the respondent with effect from the date on which the application for grant of registration was made by it before the competent authority. 35. The essentiality certificate, thus, must be treated to be a proof of the fact that the importers have fulfilled the conditions enabling them to obtain the benefit under the exemption notification. 36. The principles as regard construction of an exemption notification are no longer res integra; whereas the eligibility clause in rela ..... X X X X Extracts X X X X X X X X Extracts X X X X
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