( 1 ) THE petitioner seeks a direction for quashing the order of the Joint director General, of Foreign Trade, dated 24-1-1997, (hereafter "the impugned order") in appeal, issued under the Foreign Trade and Development Act, 1992 (hereafter "the Act" ).

( 2 ) TWO purchases orders were placed on the petitioner on 20th September 1984, and 11th March 1985, by the National Diary Development Board, ("nddb")under a world Bank project. The NDDB is, a Government of India Enterprise. According to the purchase orders, the petitioner had to fabricate and supply 21 barrels for broad guage Rail Milk tankers. The first purchase order was for supply of 11 barrels and the second was for the supply of 10 barrels. The Broad gauge Rail Milk Tankers were to have stainless steel sheet content of 59701 kgs. , suitable for carrying 40 thousand liters per barrel, complete with all other components and fittings for a FOB value of Rs. 60,42,000/ -. As the supplies were to be made under a World Bank project, it was a "deemed export" by it petitioner to NDDB, Anand.

( 3 ) IT is an undisputed fact that as against the first order for 11 barrels, the petitioner manufactured two barrels with stainless steel purchased from the local market, and supplied them to the purchaser. A Special Imprest licence No. 3197096 dated 14th September, 1988 was issued by the Controller of imports and Exports to the petitioner to meet the export order for the balance 19 barrels. In terms of the license, the petitioner was to import Stainless steel/coils-AISI 304 of the following specifications:

a) S. S. Sheets 3. 15 M. M. 47,500 Kgs. b) S. S. Plates 5. 00 M. M. 12,967 Kgs. c) S. S. Sheets 2. 00 M. M. ? 2,375 Kgs. 62,842 Kgs.

The approximate CIF value of the consignment to be imported was Rs. 24,19,909/-and the Import Duty leviable was exempted, as a corresponding export obligation of FOB value of export of Rs. 60,42,000/- was imposed upon the petitioner.

( 4 ) THE 40,000 litres capacity stainless steel barrels for Rail Milk tankers, having Stainless Steel Sheet contents of 59,701 Kgs. For a FOB value of rs. 60,42,000/- were to be supplied in 9 months, to be calculated from the date of clearance of the first consignment or from 30 days of import of the first consignment, whichever was earlier. However, against the balance order of 19 barrels, the petitioner expressed its inability to supply 10 barrels to the nddb, against the Purchase order dated 11th March 1985. The same was treated as cancelled, although the formal cancellation of the order took place as late as on September 3rd 1993. Since cancellation of the order for 10 barrels was agreed to on principle between the petitioner and NDDB, and the latter had to supply only 9 barrels (against the balance order of 11 barrels), the Import License dated 14th September 1988, granted to the petitioner was revised by duty exemption Entitlement Certificate (DEEC) No. 006143 dated 14th September 1998, as follows :

Particulars Specification Quantity CIF Value S. S. Sheets/coils AISI 304 3. 14 M. M. ? ? 22,500 Kgs. ? 7,87,500 S. S. Plates AISI 304 5. 00 M. M. ? 6,142. 26 Kgs. ? 3,19,397 S. S. Sheets/coils AISI 304 2. 00 M. M. ? 1,125. 00 Kgs. ?? 39,375 29,767. 26 Kgs. 11,46,272

( 5 ) THE petitioner imported stainless steel sheets and plates of the CIF value of Rs. 10,51,021/- as under :

S. S. Sheets 3. 15 mm 22,000 Kgs. S. S. Sheets 2. 00 mm ? 1,700 Kgs. Plates 5. 00 mm ? 7,000 Kgs. 30,700 Kgs.

( 6 ) AS the quantity of imports exceeded the quantity sanctioned under the amended import license, by 1,432. 74 Kgs. , the petitioner paid Customs duty in the amount of Rs. 1,02,109/- on such excess quantity imported. With the payment of the Customs duty on the excess quantity of steel imported, the CIF Value stood reduced to Rs. 10,01,962/ -.

( 7 ) THE petitioner supplied to the NDDB 9 Stainless Steel Barrels, and the proportionate FOB value of the export made by it, was in the su