Tribunal allows appeal on import of electrical steel sheets under REP licenses, emphasizing license conditions

The Tribunal allowed the appeal, setting aside the impugned order and directing for consequential relief, if any, to be granted. It determined that the import of second/defective cold roll grain oriented electrical steel sheets under REP licenses was permissible under the 1989-90 policy. The Tribunal found that the licensing authority's failure to apply paragraph 196 of the 1990-93 policy to the licenses supported this conclusion, emphasizing the importance of adhering to the conditions specified in the licenses and relevant legal precedents.

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Issues:
Import of second/defective cold roll grain oriented electrical steel sheets under REP licenses during the validity of import policy 1990-93.

Analysis:
1. The central issue in this case was whether the import of second/defective cold roll grain oriented electrical steel sheets under REP licenses was permitted during the validity of the import policy 1990-93. The appellants argued that they were allowed to import these items based on the conditions and restrictions specified in their licenses.

2. The Collector contended that the goods in question were listed in Appendix 2 part IIB of the 1990-93 Policy, which were not considered a "permissible appendix" but were restricted for import. He relied on a clarification from the licensing authority stating that the import of these goods was not permissible under paragraph 196 of the policy.

3. The Tribunal examined the nature of the goods and the conditions under which import was permitted in the licenses. It was observed that the licenses were subject to the conditions and restrictions of the 1989-90 policy as amended, indicating that the licensing authority chose not to apply paragraph 196 of the 1990-93 policy to these licenses.

4. The licenses contained a condition that they are subject to the import policy in force at the time of issue, unless otherwise specified. Since the licenses referred to the 1989-90 policy, it was concluded that this policy must apply along with its restrictions and conditions.

5. The departmental representative cited judgments to support the proposition that the policy in force at the time of importation should apply. However, the Tribunal distinguished those cases as they were not directly applicable to the present situation. A judgment of the Bombay High Court was also referenced, emphasizing that the customs department cannot question the validity of an import license if it was issued in accordance with the policy.

6. The clarification provided by the licensing authority was deemed insufficient as it did not address the specific question posed by the Customs authorities. After thorough discussions, the Tribunal concluded that the 1989-90 policy would govern the import under the licenses in question, provided the face value restrictions were adhered to.

7. Consequently, the appeal was allowed, and the impugned order was set aside. The Tribunal directed for consequential relief, if any, to be granted in accordance with the decision.

In summary, the Tribunal determined that the import of the goods under the REP licenses was permissible under the 1989-90 policy, and the licensing authority's failure to apply paragraph 196 of the 1990-93 policy to the licenses supported this conclusion. The decision was based on a detailed analysis of the conditions specified in the licenses and relevant legal precedents.

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