Transferred import licence interpretation protected imports made under the then-prevailing policy, making refusal to clear goods unlawful.

Import of raw materials, components, consumable stores and packaging materials under a transferred import licence could not be treated as illegal where the imports were made while the then-prevailing interpretation of paragraph 30(1) of the Import Trade Control Policy (Vol. II) governed the field. The HC noted reservations about the correctness of the earlier interpretation but held that, because that interpretation was operative when the goods were imported, the refusal to clear the goods was unlawful and relief followed.

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Issues: Whether the refusal to clear the imported goods under the transferred import licence was lawful, having regard to the interpretation of paragraph 30(1) of the Import Trade Control Policy (Vol. II) of AM-78 as it stood when the imports were made.

Analysis: The licence expressly permitted import of raw materials, components, consumable stores and packaging materials required for use in the licence holder's factory, subject to the stated conditions. The Court noted that, although it had reservations about the correctness of the earlier interpretation that had been followed, that interpretation was operating at the time the imports were effected. Since the petitioners imported the goods while that interpretation governed the field, the imports could not be treated as illegal merely because the Court was not deciding the earlier view's correctness in the present case.

Conclusion: The refusal to clear the goods was unlawful, and the petitioners were entitled to relief.

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