JUDGMENT

R.V. 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 prov