Advance import licence obligations follow the policy in force at issuance; later amendments cannot add retrospective burdens.

Rights under an advance import licence were governed by the policy in force when the licence was issued, and the exporter's liability for any export shortfall remained limited to proportionate customs duty, interest, and surrender of replenishment licences for the unfulfilled portion. Subsequent public notices and policy amendments could not retrospectively impose a heavier replenishment licence burden on a transaction already governed and substantially completed under the earlier regime. The authority was also bound by its earlier specific direction on the exporter's obligations. The impugned demands were held illegal and without jurisdiction, and the writ petition succeeded with consequential relief.

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Issues: Whether the authorities could insist on surrender of additional replenishment licences and apply the amended import policy to an advance licence issued under the earlier policy regime.

Analysis: The advance licence and the related duty exemption entitlement were governed by the Import Policy, 1983-84, under which the exporter's liability on shortfall in export obligation was limited to payment of customs duty on the proportionate exempt materials with interest, together with the surrender of replenishment licences for the unfulfilled portion. The exporter had complied with those requirements. The later public notice and amendments introduced in 1987 could not reopen a transaction already governed and substantially completed under the earlier policy, since such amendments were prospective and not retrospective. The authorities were also bound by their earlier direction requiring only duty, interest, and surrender of licences for the balance shortfall, and could not lawfully demand a much larger replenishment licence burden thereafter.

Conclusion: The impugned demands were illegal and without jurisdiction, and the petitioner was entitled to relief.

Final Conclusion: The writ application succeeded, the impugned communications were quashed, and the petitioner obtained consequential relief.

Ratio Decidendi: Rights and obligations under an advance import licence are governed by the policy regime in force when the licence is issued, and subsequent policy amendments cannot retrospectively impose additional burdens on completed or substantially concluded transactions; the authority is also bound by its earlier specific direction where the exporter has acted upon it.

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