Transitional import-export policy preserves accrued licence rights; pending applications are governed by earlier policy, with premium payable under the circular.
A later import-export policy with a transitional clause did not extinguish accrued entitlement to additional licences for exports made under the earlier policy; pending applications had to be processed under the policy applicable to the period of export, while the goods importable against the licence were governed by the policy in force at the time of actual import. REP Circular No. 11/93 also applied to pending Exim Scrips and REP licence applications where eligibility had been established, directing payment of a 20% premium instead of issue of licences. On that basis, the refusal to grant additional licences was unsustainable and the premium in lieu of licences was payable.
Issues: (i) Whether export houses/trading houses remained entitled to additional licences for exports made during the currency of the earlier policy despite the introduction of the later policy. (ii) Whether, in terms of REP Circular No. 11/93, the respondents were entitled to payment of 20% premium instead of issue of additional licences.
Issue (i): Whether export houses/trading houses remained entitled to additional licences for exports made during the currency of the earlier policy despite the introduction of the later policy.
Analysis: The entitlement to additional licence arose from exports made during the period when the earlier policy was operative, and the application for such licence could be made only after the close of the licensing year. Paragraph 222 of the later policy expressly provided that pending applications for additional licences relating to preceding licensing years were to be disposed of according to the policy provisions prevailing during the period to which the licence related. The later policy therefore preserved the right to obtain the additional licence, while only altering the permissibility of items to be imported against that licence by reference to the policy in force at the time of actual import.
Conclusion: The respondents remained entitled to additional licences under the earlier policy, and the refusal by the authorities was unsustainable.
Issue (ii): Whether, in terms of REP Circular No. 11/93, the respondents were entitled to payment of 20% premium instead of issue of additional licences.
Analysis: The circular covered pending applications for Exim Scrips/REP licences in respect of exports made and export proceeds realised prior to the specified cut-off date and directed payment of 20% premium in place of issue of licences where eligibility was otherwise established. Since the respondents' claim was pending and their eligibility for additional licence stood accepted, the High Court's direction to pay the premium accorded with the circular issued by the authorities themselves.
Conclusion: The respondents were entitled to the 20% premium in lieu of additional licences.
Final Conclusion: The appeals failed because the later policy did not extinguish the respondents' accrued entitlement to additional licences for earlier exports, and the circular required payment of premium in place of the licences.
Ratio Decidendi: Where a later import-export policy contains a transitional clause preserving pending applications, entitlement to an additional licence for exports made under the earlier policy is determined by the earlier policy, while the goods importable against that licence are governed by the policy in force at the time of actual import.
TaxTMI 
AI Drafter ✕
TaxTMI 
TaxTMI 
