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REGD. No. D. L.-33004/99
The Gazette of India
CG-WB-E-08072024-255280
EXTRAORDINARY
PART II—Section 3—Sub-section (ii)
PUBLISHED BY AUTHORITY
No. 2522]
NEW DELHI, MONDAY, JULY 8, 2024/ASHADHA 17, 1946
MINISTRY OF TEXTILES
(Office of the Jute Commissioner)
ORDER
Kolkata, the 24th June, 2024
S.O. 2657(E).—Vide show cause notice being numbered Jute (T)-6/1/178/JuteMill-15-IV(E)Prt-1dated
18/09/2023, there were certain allegations being levelled against the alleged jute Mill Company, M/s Loomtex Engg.
Pvt. Ltd., the said allegations in crux inter alia is mentioned hereunder :-
a) During the period from April –June 2023, the alleged mill company has supplied 5359 bales consisting of B.
Twill Jute Bags to different Government agencies against Production Control cum Supply Orders issued by this
office, and 3900 bales have been supplied to NAFED. It has surfaced after inspection and corroborating with
physical verification of documents that, 6456 bales have been siphoned to the alleged mill company through M/s
MRP Commercial Limited during the said period, either directly or channelized through one M/s Axis Overseas
Limited.
b) Documents have not been furnished by the alleged jute mill to establish the fact either M/s MRP Commercial or
M/S Axis Overseas Limited has had valid BIS License at the time of engaging into business activity of
supplying Govt. B. Twill jute bags with the alleged mill company; precisely during the period April -June, 2023.
c) Since, the manufacturer from where the supplier has supplied the B. Twill bags to the Government Agencies did
not possess BIS License at the time of supply, hence, the license number of the alleged jute mill which has been
marked / branded on the jute bags at the time to supply is misleading, illegitimate and wrongly branded.
d) Therefore, the alleged mill company has committed unfair practice, in terms of the definition as is provided in
the Jute & Jute Textile Control Order, 2016, paragraph 2(h):-
UNFAIR PRACTICE, in relation to an order made under paragraph 4 shall include misappropriation of jute
bags, non supply or default in supply of jute bags, supply of used or old jute bags or underweight jute bags or
imported jute bags, jute bags manufactured with imported raw jute or jute yarn or fabric, unbranded or
incompletely branded or wrongly branded jute bags or jute bags, which do not conform to the BIS
standards or the specifications mentioned in the production control order.
e) The alleged Mill Company has also violated the conditions of the PCSO, which mandates the manufacturer to
produce and deliver the requisite stores. However, the alleged mill company has procured and delivered the
requisite stores. Further, such material was procured from entity which did not possess the BIS license at the time.
With the said show cause notice been given on the alleged Mill Company, hearing was provided in strict
compliance with Jute & Jute Textile Control Order, 2016, keeping in mind the principles of natural justice.
Hearing was organised on 26th October, 2023 on which date the alleged mill company prayed for
adjournment. Thereafter, hearing took place on 29th January, 2024.
The following communication was made with the Mill Company M/s Loomtex Engineering Pvt. Ltd:
1. Vide letter dated 27.06.2023, M/s Loomtex Engineering Pvt. Ltd. was asked to submit GSTR1 and
Production Report for 3 months by 28.06.2023 to this office.
2. Vide letter dated 06.07.2023, letter was issued to M/s Loomtex Engineering Pvt. Ltd. to submit GSTR1
and Production Report and invoice copies for 3 months by 10.07.2023 to this office with reminder-I
vide letter ref no. Jute (T)-6/1/178/Jute Mill/15-II (E) dated 13.07.2023 and reminder-II vide letter ref
no. Jute (T)-6/1/178/Jute Mill/15-II (E) dated 08.08.2023; and subsequent reply dated 19.07.2023 and
10.08.2023 was received from M/s Loomtex Engineering Pvt. Ltd.
3. Show cause notice was issued on 18.09.2023 to M/s Loomtex Engineering Pvt. Ltd. in terms of Jute and
Jute Textiles Control Order 2016.
4. Purported reply to the show cause was received vide letter dated 28.09.2023 from M/s Loomtex
Engineering Pvt. Ltd.
Accordingly, necessary proceedings were drawn against the jute mill as per Jute & Jute Textile Control
Order, 2016 through Hearing(s) before this adjudicating authority.
The alleged mill company, controverting the allegations as is envisaged through the show cause and the
documents relied by the department, being produced at the time of hearing, replied that: -
a) the company has a long good reputation of supplying thousands of bales to different consignee at proper
time, there has been no allegation of using third party manufactured bags to supply against PCSOs given by
this office, the allegations as has been raised are with regard to supply order of NAFED, which has no
relation with the PCSOs issued by this office whatsoever; hence the provisions of Jute & Jute Textiles
Control Order 2016, is not applicable
b) the alleged mill company also denied and disputed that the jute bags procured from the third party
manufacturer had no legitimate BIS license, they further contended that, the jute bags manufactured in
excess by them, after satisfactory supply against PCSO, are only given to NAFED in terms with the work
order given by NAFED on them .
After conclusion of hearing, this adjudicating authority, passed the following order:
"Considering the above facts, the alleged mill company is ordered to produce original / certified copies of
the work order given by NAFED, the detail data of order and supply for the period from Feb-June, 2023;
the alleged mill company is also ordered to produce relevant documents authorising them by NAFED which
enumerates that, they can procure manufactured B-Twill bags from any Third party. All the documents are
to be given within a period of 7 days from the day of Receipt of this order copy."
Accordingly, the alleged mill company vide letter being numbered Nil dated 22.02.2024 through their Ld
Advocate has purportedly replied. However, no information was received from the alleged mill company which can
substantiate that NAFED had given any permission to the alleged mill company for purchasing B. Twill jute bags
from outsourced agency which do not have any BIS License.
I have gone through the allegations being levelled against the alleged mill company; the documents
corroborating such allegations and the physical inspection report. I have also heard the rival submissions of the alleged
mill company. Documents provided by the Company demonstrate details of procurement of jute bags by the mill
company from other companies (which did not have any BIS license) were also perused.
The S.O 2601(E) dated 6th June, 2022, issued by Ministry of Textiles, Government of India, in paragraph 2
has categorically demarcated the specified that jute manufactured products ought to have BIS Conformity. It was
evident that the bags were procured from entities which did not have BIS licenses. As per section 17(1) of the BIS
Act, 2016, no manufacturer shall produce any product which requires BIS Conformity, without a valid license. The
goods have been manufactured by entities which did not possess any valid BIS license at that time.
The documents produced during the Hearing establishes the fact that, the alleged mill company has
purchased B. Twill jute bags from M/s MRP Commercial and M/s Axis Overseas Limited, during April – June, 2023,
and has supplied to Government agencies including NAFED. This is clear violation of the extant provisions of the
Production Control and Supply Order which stipulates delivery of goods as per PCSO after production, and attracts
the provisions of the definition embodied in "Unfair Practice" as per Jute & Jute Textile Control Order, 2016.
Considering the above, the charges against the alleged mill company stands established.
ORDER
In terms with Jute & Jute Textile Control Order, 2016, paragraph 8 (a), the alleged mill company is debarred
from getting any PCSO for Government supply for the period commencing from the date on which this order is
propounded upto 3 months from the date of the said Order. It is made clear that if any order for Government supply is
in the pipeline of the mill company as on date when this order is propounded, that has to be fulfilled by the mill
company.
The matter stands disposed.
Let this order be circulated forthwith.
[F. No. Jute(T)-6/1/178/GN(2)/2019-I(E)]
MOLOY CHANDAN CHAKRABORTTY, Jute Commissioner
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