Suhas Chandra Sen, J. - (1.) Delta Jute & Industries Limited, the petitioner No. 1 herein, carries on business of manufacturing jute and jute yarn. The case of the company is that on or about December 31,1980 the Government of India introduced a scheme in public interest and for the purpose of earning foreign exchange for setting up 100% export oriented units. Under that scheme, the Government of India decided to give 100% export oriented units concessions in the matter of payment of excise duty provided the condition of the scheme were complied with the main feature of the scheme was that a 100% export oriented unit would undertake to manufacture in bond and export its entire production for the period ten years ordinarily and five years in the case of products involving high degree of technological change. The Scheme provided that the import of capital goods, components and raw materials would be permitted for the said units and would be exempted from import duty. Indigeneously manufactured capital goods, components and raw materials would be allowed to be purchased by such units without payment of any central excise duty. The Scheme provided that finished products manufactured in such a unit would be exempted from excise and other central levies. All the units intending to set up industries under the said scheme had to make applications to the secretariat for Industrial approvals, Ministry of Industry, Department of Industrial Development, New Delhi, in the relevant forms. The scheme was given wide publicity and the case of the petitioners is that the petitioners set up a 100% export oriented unit in terms of the resolution dated December 31, 1980 of the Ministry of Commerce, Government of India. The products manufactured by the petitioners have enjoyed the concessions in payment of excise duty since setting up of the unit. The petitioners' case is that on June 1,1983 the Export Commissioner granted to the company a "green card" bearing No. 013 certifying that the unit of the company was a 100% export oriented unit. In the 'green card' it was stated that the unit of the company had been approved under the said scheme of the Government of India as a 100% export oriented Unit. It was further stated that the said unit was entitled to top priority treatment from all concerns, Central and State Government Departments and other organisations in all matters relating to the said unit.
(2.) In 1983 Jute Manufactures Cess Act, 1983 (hereinafter described as the Jute Act) was passed to provide for levy and collection by way of cess, of a duty of excise on jute manufactures. The Jute Act came into force with effect from May 1,1984.
(3.) The first contention of the writ petitioners is that the Jute Act provides for levy and collection of a duty of excise. Therefore, it is entitled to exemption under the scheme formulated by the Government of India.;