Expired import licence and delayed shipment: grace period under import policy was only facilitative, not a matter of right.

An expired import licence did not create a right to clearance when shipment was delayed beyond the licence period. The import policy's grace period under the Import-Export Procedures was only facilitative and could not be claimed as of right. On the facts, there was no reasonable cause for the delay and no satisfactory proof that the goods were covered by the licences under which the letter of credit had been opened. The refusal to condone the delay was therefore a factual exercise of discretion and was not arbitrary or discriminatory.

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Issues: Whether the authorities were bound to condone the delay in shipment and permit clearance of the imported goods under the expired import licence, and whether refusal to do so was arbitrary or discriminatory.

Analysis: The import licence relied upon had expired before shipment, and the grace period contemplated by the Import-Export Procedures was only facilitative. The relevant policy provisions allowed a grace period after expiry of the licence, but also made it clear that such period could not be claimed as a matter of right. The record did not show any reasonable cause for the delayed shipment, nor was there satisfactory proof that the goods were covered by the licences under which the letter of credit had been opened. In these circumstances, the refusal to condone delay was an exercise of discretion based on the facts and could not be treated as arbitrary or discriminatory.

Conclusion: The refusal to condone the delay was upheld, and the plea based on discrimination failed.

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