Replenishment licence entitlement is limited to additional exports beyond licence obligations under the export policy.

Under the 1985-88 Policy Book, replenishment licence entitlement for Diamond Trading Company holders was confined to additional exports made beyond the export obligation attached to the licence. Exports undertaken merely to discharge the licence obligation did not qualify for further replenishment benefit under paragraph 207, because the policy treated that benefit as separate from the contractual obligation to export cleaned, cut and polished diamonds. Where the Department had already granted replenishment credit for eligible additional exports, no further claim could be made against the value of exports used to satisfy the licence obligation. The writ petition was rejected and the claim for additional replenishment licence failed.

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Issues: Whether a holder of a Diamond Trading Company licence, who has discharged its export obligations, is entitled to replenishment licence under paragraph 207 of the 1985-88 Policy Book for the entire value of exports made, including exports made towards the licence obligation.

Analysis: The Policy Book distinguished between the export obligation attached to the Diamond Trading Company licence and the separate benefit under paragraph 207 for re-export of imported rough diamonds. The licence conditions required the petitioners to export diamonds after cleaning, cutting and polishing in discharge of their own obligation. Replenishment licence under paragraph 207 was available only for additional exports made beyond that obligation. Since the Department had already granted replenishment benefit to the extent of such additional exports, no further claim could be made against exports made merely to satisfy the licence obligation.

Conclusion: The petitioners were not entitled to any further replenishment licence for the export value corresponding to their licence obligation, and the claim failed.

Final Conclusion: The writ petition was rejected because the policy benefit was confined to additional exports beyond the contractual export obligation under the licence.

Ratio Decidendi: A replenishment entitlement under an export policy cannot be claimed for exports made in discharge of a pre-existing export obligation under the licence and is confined only to additional eligible exports beyond that obligation.

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