Transferred REP licence entitlement for OGL imports cannot be denied for additional replenishment benefit under the same policy scheme.

Under the Import Policy 1983-84, an export house holding a transferred REP licence could not be denied endorsement for import of OGL items merely because the claim related to the additional replenishment entitlement in column 5 of Appendix 17. Paragraph 185 permitted export houses to import OGL items against REP licences issued in their own name or transferred to them, and the Court treated Appendix 17 as part of the same policy scheme. The benefit available for the basic entitlement under column 4 was therefore equally applicable to the additional entitlement, and the refusal to endorse the licence was unsustainable. The writ petition succeeded and endorsement was directed.

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Issues: Whether, under the Import Policy 1983-84, an export house holding a transferred REP licence could be denied endorsement for import of OGL items on the additional replenishment entitlement under column 5 of Appendix 17, read with paragraph 185 of the Policy.

Analysis: Paragraph 185 of the Import Policy expressly allows export houses to import OGL items against REP licences issued in their own name or transferred to them by others. Appendix 17, including column 5, operates as part of the same policy scheme and the additional replenishment entitlement is dependent upon the underlying entitlement to import the relevant item under column 4. The Court held that there was no rational basis to confine the benefit of paragraph 185 to the basic entitlement under column 4 while denying it in respect of the additional entitlement under column 5, especially when both arise from the same policy framework. The refusal to endorse the licence on the ground that no provision existed for additional REP entitlement was therefore unsustainable.

Conclusion: The refusal to make endorsement on the transferred REP licence was held to be erroneous, and the petitioner was entitled to the endorsement sought.

Final Conclusion: The writ petition succeeded and the licensing authority was directed to endorse the licence in accordance with paragraph 185(3) of the Import Policy.

Ratio Decidendi: Where a policy confers a general right to import OGL items against a REP licence, that right cannot be withheld for an additional replenishment entitlement arising from the same policy scheme unless the policy expressly excludes it.

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