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Issues: (i) whether an Export House Certificate holder could be required to furnish an RCMC from the Engineering Export Promotion Council as a condition for grant of the additional licence; and (ii) whether REP licences obtained during the 1981-82 policy period were entitled to endorsement and revalidation after the belated grant of the Export House Certificate.
Issue (i): whether an Export House Certificate holder could be required to furnish an RCMC from the Engineering Export Promotion Council as a condition for grant of the additional licence.
Analysis: The petitioner already possessed a certificate from the Federation of Indian Export Organisations. On that footing, the requirement of an RCMC from the Engineering Export Promotion Council was not necessary for consideration of the additional licence. The condition insisted upon by the authorities was not warranted once the existing certificate sufficiently established the petitioner's entitlement as an Export House Certificate holder.
Conclusion: The issue was answered in favour of the petitioner. The petitioner was entitled to the additional licence without furnishing the RCMC from the Engineering Export Promotion Council.
Issue (ii): whether REP licences obtained during the 1981-82 policy period were entitled to endorsement and revalidation after the belated grant of the Export House Certificate.
Analysis: Under the Import Policy of 1981-82, Export Houses were entitled to import replenishment facilities, and endorsement of transferred REP licences was contemplated under the policy. Once the Export House Certificate was granted for the relevant policy year, the petitioner had to be restored to the position it would have occupied had the certificate been granted in time. The Court rejected the objection that only licences pertaining to a later period could be endorsed, and also found it improbable that the petitioner had acquired dead licences after expiry. Since endorsement under the policy would otherwise be confined to the policy period, revalidation was necessary to make the facility effective.
Conclusion: The issue was answered in favour of the petitioner. The REP licences valid for 1981-82 were directed to be endorsed and revalidated for six months from the date of endorsement.
Final Conclusion: The petitioner succeeded in obtaining both the additional licence and the benefit of endorsement and revalidation of the REP licences flowing from the Export House Certificate for the relevant policy year.
Ratio Decidendi: Where a party is ultimately recognized as entitled to an Export House Certificate for a particular policy year, the ancillary import benefits attached to that certificate for the same year must also be made available and cannot be defeated by the authorities' earlier wrongful refusal.