K.Venkataswami, J. - (1.) This appeal by special leave is directed against the Division Bench judgment of the Gujarat High Court dated 7-2-1985. Brief facts concerning the case are given below.
(2.) The first respondent-Company is engaged in the manufacture of steel tubes through its Ambica Tubes Division. For the purpose of manufacture of steel tubes, hot rolled strips in coils are required as raw material. These hot rolled strips were being supplied at the relevant time to the manufacturers of steel tubes like Ambika Tubes (hereinafter referred to as the importer) through the appellant subject to certain conditions. The manufacturers who are given raw materials must possess the import licence and have to carry out certain export obligations. The obligations concerning this for the period in question, namely, April 1983 to March 1984 were given in the import and export policy for that period. Previously a public notice in respect of scheme for supply of raw material by Steel Authority of India Ltd. (hereinafter called the "SAIL") against advance import licence was issued on 11-12-1982. For the period 1983-84, it was announced, the Scheme published on 11-12-1982 would be continued. According to that, the importer becomes eligible for supply of goods on compliance of the conditions fixed in the scheme in particular, the conditions of producing advance licenses, duty exemption entitlement certificate, legal undertaking/execution of export bond and furnishing of irrevocable Letter of Credit. The appellant as an indigenous supplier under the aforesaid import and export policy for 1983-84 made an announcement of the prices at which the raw material will be supplied. That announcement was published in the Economic Times on 10-6-1983 under the caption "Scheme for Supply of Certain Categories of Indigenously Produced Steel Materials at Competitive Prices against Valid Import Licenses".
(3.) Pursuant to the abovesaid announcement, the importer submitted licenses requiring supply of about 3768 tonnes of hot rolled strips in coils. It was found that the licence submitted by the importer (Ambica Tubes) did not mention that it was an advance import licence nor was it accompanied by Duty Exemption Entitlement Certificate and the bond. In addition to the submission of licences, the said Ambica Tubes, however, submitted Letter of Credit dated 19-8-1983 on the same date, namely, 20-8-1983. In the Letter of Credit also there were certain infirmities and when the same was pointed out, it was rectified and submitted before 25-8-1983.;