B.P. Jeevan Reddy, J. - (1.) Leave granted.
(2.) With a view to encourage exports, the Government of India issued the "Export and Import Policy (1st April, 1992 and 31st March, 1997)" introducing inter alia a scheme called "Duty Exemption Scheme" contained in Chapter-VII. Under this scheme, imports of duty free raw materials, components, intermediates, consumables, parts, spares including mandatory spares and packing materials required for the purpose of export production could be permitted "subject to the fulfilment of time bound export obligation and value addition as may be specified." Advance licences could be based on either value or quantity; it was for the exporter to apply either for a value based advance licence or a quantity-based advance licences (vide Clauses 47 and 48). Clause 49 in Chapter-III sets out the particulars to be mentioned in the advance licence. One of the particulars to be mentioned is "(d) the value addition in accordance with the standard Input-Output norms published by means of a Public Notice or in respect of items for which such norms have not been published, value addition as may be specified by the competent authority." Clause 52 expressly provides that "the Chief Controller of Imports and Exports, may, on the recommendation of the Advance Licencing Committee (ALC) modify the norms or prescribe additional norms." Clause 59 prescribes the eligibility for applying for an advance licence. It says, "any merchant exporter or manufacturer exporter who holds an Importer-Exporter Code number, a specific export order/letter of credit and is in a position to realise the export proceeds in his own name may apply for duty free licences." Clause 60 prescribes that "value addition norms, as specified by means of a Public Notice issued in this behalf, shall apply to duty free licences". Clause 63 provides that a licence issued under the said scheme shall specify the export obligation which has to be fulfilled within the period specified therein. Clause 66 provides that "Exports/supplies made from the date of receipt of an application under this scheme by the licensing authority may be accepted towards discharge of export obligation....". (Clause 66 has been amended later in 1993 and 1994. We are, however, concerned with the unamended Clause 66).
(3.) On 31st March, 1992, a public notice was issued, as contemplated by Clauses 49 (d) and 60 specifying the value addition at 1000 per cent. in the case of "frozen marine products packed in polythene bags." On September 25, 1992, a change was effected in the value addition norm - instead of 1000 per cent, it became 1900 per cent.;