Inaction of Department cannot be a ground for denying claim of Applicant – Supreme Court
THE importer made an application claiming grant of 8 % Cash Compulsory Support premium against the advance import licence under the scheme funded by the Reserve Bank of India. Under circular No. 11 dated 05.05.1993 the application for relief was to be made by 31.07.1993. The application was filed on 26.07.1993.
By the order dated 23.03.2001 the Deputy Director General of Foreign Trade wrote to the Writ importer that its claim for grant of 8% Cash Compulsory Support premium against the advance import licence under the scheme funded by the Reserve Bank of India cannot be allowed as the scheme had been closed since 1994.
The Punjab and Haryana High Court had quashed this order and directed release of the grant of 8% Cash Compulsory Support premium against advance import licence as per circular No. 11 dated 05.05.1993 along with interest at the rate of 8 % per annum.
Litigation hungry Government took the matter to the Supreme Court.
The Supreme Court observed that the application was within time. The concerned authorities failed to take necessary action on the application of the Writ Petitioner, and their inaction cannot be a ground for denying the claim of the Writ Petitioner.
So the Govt Appeal is dismissed.