Registered import contract protection survives later OGL withdrawal under the earlier import policy extension.

A firm import contract for a second-hand offset printing machine, supported by an irrevocable letter of credit and timely registration with the foreign exchange bank, remained protected under Para 7 of Appendix 10 of Import Policy AM 82-83. The later shipment date did not defeat that protection because the contract terms were otherwise unchanged and time was not shown to be of the essence. Since Para 7 expressly allowed shipment up to 31-3-1984 in pursuance of such a registered contract, the subsequent removal of the item from Open General Licence under a later policy could not override the earlier accrued entitlement. The import was therefore entitled to clearance under the earlier policy framework.

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Issues: Whether the import of the second-hand offset printing machine was protected under Para 7 of Appendix 10 of the Import Policy AM 82-83 notwithstanding shipment after the policy period and the subsequent removal of the item from Open General Licence in the later policy.

Analysis: The contract was entered into and the letter of credit was opened on 14-2-1983, and the contract was registered with the foreign exchange bank on the same day. The letter of credit was certified to be irrevocable. The alteration in the shipment date did not by itself negate the existence of a firm contract, as no other contractual term changed and time was not shown to be of the essence. Para 7 expressly permitted shipment up to 31-3-1984 in pursuance of such a firm contract where the contract was duly registered on or before 28-2-1983. The later policy provisions could not override the special protection already conferred by Para 7, and the import therefore had to be tested under the earlier policy framework.

Conclusion: The import fell within Para 7 of Appendix 10 of the Import Policy AM 82-83 and was not liable to be denied clearance on the ground that it had ceased to be covered by OGL under the later policy.

Final Conclusion: The confiscation order and the objection to clearance were unsustainable, and the importer was entitled to the benefit of the earlier policy protection.

Ratio Decidendi: Where a firm and duly registered import contract is covered by a specific policy extension permitting shipment beyond the policy period, the subsequent withdrawal of OGL treatment under a later policy does not defeat the accrued entitlement under the earlier policy provision.

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