Concessional customs duty depends on compliance with licensing conditions; unlicensed importers cannot claim the exemption.

Concessional customs duty under the notification for jumbo rolls of photographic colour paper was available only where the importer satisfied the specified conditions, including an industrial licence under the Industries (Development and Regulation) Act, 1951 and an undertaking to convert the rolls. Importers who did not hold the required licence, and who had not taken effective steps to obtain the corresponding carry-on-business licence within time, could not claim the concession. The distinction between licensed and unlicensed importers was treated as a rational classification linked to the policy of limiting the exemption to regulated undertakings, and the exemption notification was not treated as an enforceable promise in favour of the importer.

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Issues: Whether the petitioners were entitled to claim concessional customs duty under the notification relating to jumbo rolls of photographic colour paper, and whether the condition requiring an industrial licence under the Industries (Development and Regulation) Act, 1951 was invalid, unreasonable, or contrary to public interest.

Analysis: The notification granted concessional duty subject to specified conditions, including an undertaking to convert the jumbo rolls and possession of an industrial licence. The petitioners admittedly did not hold such a licence and had not taken effective steps to obtain the required carry on business licence within the permitted time. The policy underlying the notification was to restrict the concession to undertakings satisfying the regulatory condition, and the distinction between licensed and unlicensed importers was treated as a rational and permissible classification. The Court also noted that an exemption notification does not create an enforceable promise in favour of the importer.

Conclusion: The challenge to the notification failed, and the petitioners were not entitled to the claimed exemption or concessional rate of duty.

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