VIRTUE OF THE FACT THAT THE SECOND SUBPARAGRAPH OF ARTICLE 2*(1 ) OF DECISION NO 2177/83/ECSC LIMITED THE OBLIGATION TO REPORT STOCK POSITIONS AS AT 30 JUNE 1983 TO CATEGORIES II AND III . THAT CIRCUMSTANCE WAS SUFFICIENT, IT SAYS, TO SHOW THAT STOCKS OF CATEGORY V PRODUCTS ( REINFORCING BARS ) COULD NO LONGER BE TAKEN INTO CONSIDERATION AS A JUSTIFICATION FOR SALES IN EXCESS OF THE ALLOCATED DELIVERY QUOTAS .
10 IT MUST BE POINTED OUT IN THAT REGARD THAT NO GENERAL DECISION IN FORCE BETWEEN 1 JULY 1981 AND 30 JUNE 1983, THAT IS TO SAY NEITHER DECISION NO 1831/81/ECSC NOR DECISION NO 1696/82/ECSC, LAID DOWN RULES APPLICABLE TO STOCKS OF PRODUCTS IN EXISTENCE EITHER ON 30 JUNE 1981, THE DATE ON WHICH THE PRODUCTION AND DELIVERY QUOTA SYSTEM CAME INTO EFFECT, OR ON 30 JUNE 1982 . THE SECOND SUBPARAGRAPH OF ARTICLE 2*(1 ) OF DECISION NO 1696/82/ECSC MERELY REQUIRED UNDERTAKINGS TO REPORT THEIR STOCK POSITION AS AT 30 JUNE 1982 . HOWEVER, ACCORDING TO THE THIRD RECITAL IN THE PREAMBLE TO THE SAME DECISION, THE SOLE PURPOSE OF THAT OBLIGATION WAS TO IMPROVE MONITORING OF THE SYSTEM OF PRODUCTION QUOTAS .
11 FURTHERMORE, NO PROVISION OF DECISION NO 2177/83/ECSC EXPRESSLY TERMINATED THE PRACTICE FOLLOWED BY THE COMMISSION DURING THE TWO PRECEDING YEARS . THE MERE FACT THAT UNDER THE LATTER DECISION, STOCKS OF CATEGORY V PRODUCTS NO LONGER HAD TO BE REPORTED CANNOT BE REGARDED AS A CLEAR ALTERATION OF THE PREVIOUS PRACTICE .
12 NOR CAN IT BE INFERRED EITHER FROM THE DOCUMENTS ON THE FILE OR FROM THE ARGUMENTS PRESENTED TO THE COURT THAT SAN CARLO WAS INDIVIDUALLY WARNED IN GOOD TIME OF THE TERMINATION OF THAT PRACTICE . IN REPLY TO A QUESTION PUT BY THE COURT, THE COMMISSION ADMITTED THAT IT HAD INFORMED SAN CARLO FORMALLY OF THE DISCONTINUANCE OF THE PRACTICE IN QUESTION ONLY IN NOVEMBER 1984, THAT IS TO SAY AFTER THE PERIOD IN REGARD TO WHICH A SANCTION WAS IMPOSED IN RESPECT OF THE CONTESTED EXCESS DELIVERIES .
13 CONSEQUENTLY, IT MUST BE ACCEPTED THAT SAN CARLO WAS ENTITLED TO CONSIDER THAT IN THE FOURTH QUARTER OF 1983 THE COMMISSION HAD NOT TERMINATED ITS PRACTICE OF TOLERATING DELIVERIES IN EXCESS OF QUOTAS FROM STOCKS OF REINFORCING BARS EXISTING ON 30 JUNE 1981 AND ON 30 JUNE 1982 . THE COMMISSION WAS THEREFORE REQUIRED, BEFORE IMPOSING THE CONTESTED SANCTION, TO VERIFY THAT THE EXCESS COMPLAINED OF COULD NOT BE ATTRIBUTED TO THE PRACTICE WHICH WAS TOLERATED IN 1981 AND 1982 . HOWEVER, IT APPEARS FROM THE STATEMENT OF THE REASONS ON WHICH THE CONTESTED DECISION IS BASED THAT THE COMMISSION REFUSED AS A MATTER OF PRINCIPLE TO CARRY OUT THAT CHECK . IT THEREFORE ACTED CONTRARY TO THE APPLICANT' S LEGITIMATE EXPECTATION THAT THE DEGREE OF TOLERANCE THAT HAD BEEN ACCEPTED FOR TWO YEARS WOULD BE CONTINUED . THE APPLICANT' S SECOND SUBMISSION MUST THEREFORE BE UPHELD AND THE CONTESTED DECISION MUST BE DECLARED VOID .
14 IT IS