Transitional protection under import policy preserved raw silk imports against valid pre-existing licences despite a later negative list.

Where a later import policy expressly preserved the validity of licences issued before its commencement, import of raw silk against pre-existing REP Licences/Exim Scrip remained protected despite the item being placed in the negative list. The earlier policy had permitted such imports, and a subsequent clarificatory circular could not override the policy's transitional clause or extinguish the entitlement already created by valid licences. An executive clarification inconsistent with the governing policy was therefore ineffective, and the import entitlement under the saved licences prevailed.

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Issues: Whether raw silk could be imported against REP Licences/Exim Scrip issued under the earlier import policy after the later policy placed silk in the negative list, and whether the clarificatory circular could curtail the transitional protection given by the new policy.

Analysis: The later policy contained an express transitional clause providing that licences issued before its commencement would continue to be valid for import and export of the items permitted therein. The earlier policy had permitted import of raw silk against REP Licences/Exim Scrip, and the petitioners had purchased such licences and entered into the import transaction before the circular was issued. A clarification cannot alter the policy itself, and any circular inconsistent with the policy cannot prevail. The policy's own transitional arrangement protected imports under valid pre-existing licences notwithstanding the later negative list.

Conclusion: The import was permissible under the transitional clause, and the circular could not defeat that entitlement. The petitioners succeeded, and the impugned circular was liable to be quashed.

Final Conclusion: The writ petition was allowed, the circular was set aside, and the respondents were directed to release the imported goods on payment of customs duty against the REP Licences/Exim Scrip.

Ratio Decidendi: Where a later import policy expressly saves pre-existing licences for items permitted under the earlier policy, an executive circular inconsistent with that transitional protection cannot extinguish the import entitlement created by the policy itself.

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