Marble Art & Anr. Vs Union of India & Ors. (Delhi High Court)
Introduction: The recent judgment in the case of Marble Art & Anr. vs. Union of India & Ors. by the Delhi High Court sheds light on the intricacies surrounding the fixation of wastage norms for Export-Oriented Units (EOUs). The petitioner, a Partnership Firm engaged in the manufacture of marble and its downstream products, sought various reliefs, primarily urging the court to intervene in the process of fixing wastage norms for their products.
Background of the Case: The petitioner, a 100% EOU, claimed that the Ministry of Commerce, through its Development Commissioner, granted them permission for the manufacture of marble and downstream products. These downstream products included marble slabs, tiles, mosaics, borders, profiles, gauged slate, and other articles made of natural stone. The raw materials used were either imported or procured from the domestic market in the form of rough and irregular large-sized marble blocks.
The fixation of wastage norms becomes crucial for EOUs, as it directly impacts their production processes and compliance with export-oriented policies. In the absence of specific norms, the petitioner approached the Development Commissioner to set ad hoc wastage norms. Subsequently, the Board of Approvals (BOA) fixed the norms, allowing a certain percentage of wastage based on the recommendations of the Indian Bureau of Mines.
Issues Raised by the Petitioner: The petitioner, dissatisfied with the existing wastage norms and facing interference from the Excise Department, sought judicial intervention through the filing of a petition. The primary issues raised by the petitioner included:
