Import policy exemption depends on a pre-cut-off irrevocable credit tied to the relevant licence holder, not later amendment.

Para 211 of the Import Policy 1979-80 protected a restricted REP licence only where the licence holder had made a firm import commitment by opening an irrevocable letter of credit before the cut-off date. A letter of authority holder could act for the licence holder, but the credit had to relate to that licence holder's own commitment. Section 147 of the Customs Act could not expand the policy concession. Because the credit originally related to other licences and the licence in the relevant name was added only later by amendment, the import did not qualify and was treated as unauthorised, with confiscation restored.

---

---

Issues: Whether the import of industrial crude palm oil against the licence in the name of P & S Exports Corporation was valid under para 211 of the Import Policy 1979-80, where the irrevocable letter of credit had been opened by the letter of authority holder and later amended after the critical date.

Analysis: Para 211 of the Import Policy 1979-80 preserved the validity of otherwise restricted REP licences only where the licence holder had entered into a firm commitment for import by opening an irrevocable letter of credit before 1-5-1979. The letter of authority holder could act on behalf of the licence holder, but the opening of credit had to relate to the licence holder's import commitment. Section 147 of the Customs Act, 1962 was confined to acts required under the Customs Act and could not be used to enlarge the import policy concession. The record showed that the credit originally related to licences standing in the name of another licensee and the licence in the name of P & S Exports Corporation was brought in only by amendment after the critical date.

Conclusion: The import was not covered by para 211 and was unauthorised; the Collector's confiscation order was restored and the Revenue's appeal succeeded.

Final Conclusion: The majority held that the concession under para 211 was unavailable because the requisite pre-1-5-1979 commitment had not been made for the relevant licence holder, and the confiscation order stood revived.

Ratio Decidendi: For availing an import-policy exemption conditioned on a pre-cut-off irrevocable letter of credit, the commitment must be shown on behalf of the licence holder concerned, and a later substitution or amendment of the licence does not cure the absence of such qualifying commitment.

---