Reasoned revalidation of import licences required when policy permits amendment and import is otherwise not prohibited.

The Delhi High Court noted that an import licence and the Foreign Trade Policy/Handbook of Procedure permitted amendment and revalidation on merits, and that the licensing authority had to consider such a request reasonably rather than mechanically. It found the refusal unsupported by cogent reasons, particularly where the import was not prohibited and the policy contemplated clearance of goods already shipped or arrived against a later authorisation. Quarantine compliance remained mandatory, but it did not justify denial of relief where the importer was willing to bear the consequential duty, fine, penalty, quarantine charges, and revalidation charges. The amendment refusal was quashed and release for home consumption was directed subject to statutory conditions.

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Issues: Whether the rejection of the request to amend and revalidate the import licence was justified, and whether the imported horses were liable to be released for home consumption subject to statutory conditions.

Analysis: The import licence and the Foreign Trade Policy / Handbook of Procedure permitted revalidation and amendment on merits. The petitioner had sought amendment immediately after the earlier proceedings and before the respondents took any meaningful decision. The refusal was found to be mechanical and unsupported by cogent reasons. The Court held that the licencing authority ought to have considered the request reasonably, especially when import of horses from Austria/Germany was not prohibited and the policy itself contemplated clearance of goods already shipped or arrived against a subsequently issued authorization. The Court also accepted that quarantine requirements remained mandatory, but held that they did not justify denial of relief where the horses had been tested and the petitioner was willing to bear all consequential liabilities, including duty, fine, penalty, quarantine charges, and revalidation charges.

Conclusion: The rejection of the amendment request was quashed. The petitioner was held entitled to clear the horses for home consumption, subject to compliance with the prescribed tests and payment of the directed dues and charges.

Final Conclusion: The writ petition succeeded, and the petitioner obtained substantive relief enabling release of the horses while preserving the respondents' authority to enforce quarantine and fiscal conditions.

Ratio Decidendi: A licencing authority must exercise its power to amend or revalidate an import authorization reasonably and on germane considerations, and cannot refuse relief mechanically where the governing trade policy permits such correction and the import is otherwise not prohibited.

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