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Issues: (i) Whether the policy circulars and public notice issued after grant of the licence could restrict import of lactose under the transferred DFIA licence; (ii) Whether the import was covered by a valid licence having regard to the date of shipment and the date of ex-bond clearance.
Issue (i): Whether the policy circulars and public notice issued after grant of the licence could restrict import of lactose under the transferred DFIA licence.
Analysis: The licence was issued before the later public notice, clarification and policy circular. The governing principle applied was that the norms and policy in force on the date of grant of the licence govern the rights under that licence, and a subsequent change cannot retrospectively take away the benefit already attached to a valid licence, especially where export obligation had been discharged and transferability had been endorsed.
Conclusion: The later policy circulars and public notice did not apply to the already issued licence, and the issue was decided in favour of the assessee.
Issue (ii): Whether the import was covered by a valid licence having regard to the date of shipment and the date of ex-bond clearance.
Analysis: The licence was valid up to the end of the month in which it expired for imports/shipment governed by the Handbook of Procedures. Under paragraph 9.11A, the date of shipment by sea is the date on the Bill of Lading, and paragraphs 2.12.1 and 2.12.2 deem the authorisation valid until the last day of the concerned month and make validity depend on shipment date rather than arrival at the Indian port. The Bill of Lading was within the licence period, so the import could not be denied clearance on the ground that the in-bond sale invoice was later.
Conclusion: The import was held to be covered by the licence and the refusal of clearance was unsustainable.
Final Conclusion: The writ petition succeeded, the departmental objection was rejected, and the goods were directed to be assessed and cleared under the transferred DFIA licence.
Ratio Decidendi: The policy and norms governing a duty-free import authorisation are those in force on the date of grant of the licence, and import validity is determined by the shipment date under the applicable Handbook of Procedures, not by a later change in policy or the date of subsequent sale or clearance.
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