Prospective operation of import policy amendment saved accrued rights to import portable generators under additional licences.

The amendment adding portable generators to the restricted import list operated prospectively only and did not retrospectively extinguish import rights that had accrued between the two public notices of 27 and 29 July 1981. Portable generators were therefore importable against additional licences during that interregnum, because the later notice could not be treated as merely clarificatory and firm commitments already made had to be respected. On that basis, the show cause notice, adjudication order and appellate order founded on the restrictive amendment were unsustainable and liable to be quashed.

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Issues: Whether the amendment inserting "portable generators" in the relevant import policy provisions operated prospectively or retrospectively, and whether the impugned show cause notice, adjudication order and appellate order were liable to be quashed.

Analysis: The controversy turned on the effect of two public notices issued on 27 July 1981 and 29 July 1981. The earlier notice amended the policy so that export houses could import alternators/generators including portable generators against additional licences, while the later notice added portable generators to the restricted list. The Court held that the later amendment could not be treated as clarificatory or retrospective so as to defeat firm commitments and import rights that had accrued during the interregnum. The Court also relied on the clarification obtained from the technical authority and on the prior appellate decision dealing with an identical issue, which supported the view that portable generators were not to be equated with generators for the restrictive provision.

Conclusion: The amendment operated prospectively only, portable generators were importable under the additional licence during the relevant period, and the impugned customs proceedings were unsustainable and liable to be quashed.

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