Revalidation of import licence for scarce raw material upheld despite policy change and objection on indigenous availability

Revalidation of a supplementary import licence for hard synthetic waste yarn was examined in light of a later import-policy change and an objection by the Textile Commissioner. The note states that the licence had been issued for an actual user, while the material remained only marginally available domestically, as shown by the SASMIRA report. On that basis, the objection based on indigenous availability was treated as unsupported, and revalidation was said to cause no prejudice or confer any benefit beyond the original licence conditions.

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Issues: Whether the petitioners were entitled to revalidation of the supplementary import licence for import of hard synthetic waste yarn despite the change in import policy and the objection raised by the Textile Commissioner.

Analysis: The licence had originally been granted under the import policy for actual users, and the later application for revalidation was rejected on the ground that the material was indigenously available. The report of SASMIRA showed that hard synthetic waste was barely available in the country and that indigenous availability met only a very small part of the requirement. The correspondence relied upon by the Textile Commissioner was treated as reflecting a persistent objection notwithstanding the grant of the original licence and the subsequent report showing non-availability. The Court also noted that revalidation would not prejudice the respondents and would not confer any additional benefit beyond the original conditions of the licence.

Conclusion: The petitioners were entitled to revalidation of the supplementary licence, and the respondents were directed to revalidate it.

Ratio Decidendi: Where a licence was originally granted for import of a scarce raw material and the material remained substantially unavailable indigenously, administrative authorities could not withhold revalidation on an unreasonable or unsupported objection, particularly when no prejudice would result to the State.

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