Import policy amendment can override earlier letter of credit protection when public interest justifies a rational classification.

Import entitlement was governed by the policy in force at the time of import, and an amendment made under statutory power could restrict benefits to goods already shipped before the public notice. An earlier irrevocable letter of credit did not freeze the applicable policy, because the claimed protection operated only as a form of promissory estoppel and could not prevent modification or withdrawal in public interest. The distinction between goods already in transit and goods not yet shipped was treated as rational, so the amended policy was upheld and imports made after the amendment could not claim the earlier benefit.

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Issues: Whether the amendment to the Import and Export Policy could be challenged on promissory estoppel or Article 14 grounds, and whether an irrevocable letter of credit opened before the amendment protected imports made after the amendment.

Analysis: The import policy was amended under the statutory power conferred by Section 3 of the Imports & Exports (Control) Act, 1947, and the amended policy expressly restricted the benefit to goods already shipped from the country of origin before the public notice. The claimed protection based on an earlier letter of credit was treated as another form of promissory estoppel, which could not override a withdrawal or modification made in public interest. The governing principle applied was that entitlement to import depended on the policy in force at the time of import, and the distinction between goods already in transit and goods not yet shipped was held to be rational.

Conclusion: The challenge failed. The amended policy was upheld, and the import made after the amendment was not entitled to the earlier policy benefit.

Ratio Decidendi: Import entitlement is governed by the policy in force at the time of import, and a benefit granted under an import policy may be modified or withdrawn in public interest without attracting promissory estoppel or Article 14 invalidity where the classification adopted is rational.

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