R.Vs.Raveendran,J. - (1.) Leave granted. Heard counsel.
(2.) By notification dated 23-7-1971 the Government of India formulated a "Transport Subsidy Scheme" for grant of subsidy on the transport of raw materials and finished goods to and from certain selected areas with a view to promote growth of industries in such areas. Clause 6 contains the details of the Scheme. Sub-clause (i) thereof provided that "a transport subsidy will be given to the industrial units located in selected areas in respect of raw materials which are brought into and finished goods which are taken out of such areas." Sub-clause (iv) specified the north eastern region including the State of Assam as one of the selected areas to which the scheme was made applicable. Sub-clause (xii) required the State Government to set up a Committee consisting of Director of Industries, a representative of the State Industries Department, a representative of the State Finance Department, and a nominee of the Central Government (Ministry of Industrial Development, to scrutinize and settle all claims for transport subsidy arising in the State. The said Committee was required to call upon the applicants for subsidy, to provide proof of raw materials imported into the State and finished goods exported out of the State by their industrial units, to decide their eligibility for transport subsidy. The Committee was also required to scrutinize and settle the claims in the manner indicated in the scheme. The words "industrial unit", "raw material" and "finished goods" were defined in sub-clauses (a, (h) and (i) of clause (4) of the scheme, as follows :- "(a) "Industrial Unit" means an industrial unit where a manufacturing programme is carried on. (h) "Raw material" means any raw material actually required and used by an industrial unit in its manufacturing programme as approved by the Government of India and/or by the Government of State/Union Territory in which the industrial unit is located." (i) "Finished goods" means the goods actually produced by an industrial unit in accordance with the manufacturing programme approved by the Government of India and/or the Government of the State/Union Territory in which the industrial unit is located."
(3.) The appellant claimed that it has its industrial unit at Tinsukia, Assam; that it was engaged in the manufacturing activity of crushing mustard seeds and producing two distinct products namely mustard oil and oil cake, as finished goods; and that it was registered under the transport subsidy scheme, after verification as provided in the Scheme. It was also claimed that crushing of mustard seeds yielded 30-34% mustard oil and 60-64% oil cake, each product having a separate identity and different markets.;