Exim Policy relaxation power extends to revalidation of transferable duty free import licences where genuine hardship is shown.

Paragraph 21 of the Exim Policy was interpreted as broad enough to permit the licensing authority to grant relaxation or relief, including extension or revalidation of a transferable duty free import licence, where genuine hardship was shown. The absence of an express clause for extending transferable licences did not remove that power. A refusal founded only on the supposed absence of authority was therefore inconsistent with the policy framework and prior decisions recognising the same relaxation power. The authority was accordingly required to consider extension or revalidation on the merits where hardship is established.

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Issues: Whether the licensing authority had the power under paragraph 21 of the Exim Policy to revalidate or extend the validity period of a transferable duty free import licence on the ground of genuine hardship.

Analysis: Paragraph 21 of the Exim Policy empowered the Director General of Foreign Trade to grant relaxation or relief where strict application of the policy or procedure would cause genuine hardship or adversely affect trade. The Court held that this provision was wide enough to include power to extend or revalidate the validity period of a licence. The absence of an express provision for extension in respect of transferable licences did not exclude that power where hardship was shown. The refusal was based solely on a supposed lack of power, which was contrary to the legal position earlier recognised in decisions on the same policy framework.

Conclusion: The licensing authority did have the power to consider and grant extension or revalidation of the licence on merits.

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