Retrospective cancellation of licence revalidation is impermissible where the policy allows extension and it was already acted upon.

The Export and Import Policy, 1997-2002 and the Handbook of Procedures were read as a single duty exemption and remission scheme, and the revalidation and general validity provisions were held applicable to an Annual Advance Licence. On that basis, the authorities could not retrospectively cancel an extension that had already been granted and acted upon during the operative policy period. The cancellation of revalidation was therefore not justified, the extended licence period was upheld, and the impugned communications were quashed.

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Issues: Whether the authorities were justified in cancelling the revalidation of the Annual Advance Licence and whether the extension already granted could be denied retrospectively.

Analysis: The policy framework in the Export and Import Policy, 1997-2002 and the Handbook of Procedures, 1997-2002 was read as part of the same duty exemption and remission scheme. The revalidation clause in Chapter 7.23, the provisions relating to annual requirement licences, and the general validity and revalidation provisions in paragraphs 4.15 and 4.16 were treated as applicable to Annual Advance Licence as well. The Court further held that the scheme was a beneficial administrative policy for the relevant period, and that once export and import had been undertaken during the period of extension, the later discontinuance of the scheme could not be used to undo the validly extended licence on a retrospective basis.

Conclusion: The cancellation of revalidation was not justified and the extension of the Annual Advance Licence was held valid.

Final Conclusion: The writ petition succeeded, the impugned communications were quashed, and the extended licence period was upheld.

Ratio Decidendi: Where the policy itself permits revalidation and related validity provisions are applicable to annual requirement licences, the authorities cannot retrospectively invalidate an extension already granted and acted upon during the operative policy period.

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