TaxTMI 
TaxTMI 
1985 (8) TMI 235
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....t publishes the import policy in the form of a book which is popularly known as 'Red Book' for every year. The Central Government from the year 1954 devised a scheme known as 'Export Promotion Scheme'. Under this Scheme, traders were to get themselves registered, then export goods and earn foreign exchange for the country and in return the Government gives certain incentives in the form of replenishment licences and also cash incentives. The Import Policy for the year 1983-84 prescribes that the Export House will be allowed to import OGL items against the REP Licence issued in their own name or transferred to them by others. The petitioner is carrying on business of financing REP Licences and Commission Agent in the name of M/s. Prashant....
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....s circular provides that additional import entitlements are not allowed to be used for import of OGL items by Export Houses against REP licences under the provisions of Para 185 and against such additional entitlements, only the items specifically permitted in Column 5 will be allowed. The refusal to make the requisite endorsement on the licence of respondent No. 5 has given rise to filing of the present petition under Article 226 of the Constitution of India in this Court on October 21,1983. 2. To appreciate the contentions of the petitioner, it is necessary to make reference to certain provisions of the Import Policy for the year April 1983 to March 1984. Paragraph 136 (1) of this Policy provides that the items permissible for import a....
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....import of OGL items should get the licences endorsed by the licensing authority as under : "This licence will also be valid for import of OGL items under para 185 of Import-Export Policy, 1983-84 (Vol. I) subject to the conditions laid down, and shall be non-transferable." With this background, it is now necessary to consider the grievance of the petitioner. 3. Shri Rana, learned counsel appearing on behalf of the petitioner, submits that the import policy permits the holder of REP licence to import OGL items in accordance with para 185 and therefore it was not permissible for the respondent authorities to decline to make the requisite endorsement on the licence transferred in favour of respondent No. 5 in accordance with paragraph....
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....ces. It is further claimed that various export products against which replenishment is permissible and the rate and items of replenishment are enumerated in Columns 2, 3 and 4 in Appendix 17 of the Policy. Over and above this entitlement, additional import replenishment has been provided in Column 5 for the import of specific items and therefore 15% additional entitlement allowed for import of OTS containers cannot be used for any other purpose. In other words, the contention of the respondent authorities is that though in respect of 5% entitlement provided under Column 4 of Appendix 17, it is permissible for the importer to import OGL items, such advantage is not available in respect of 15% additional entitlement. The contention urged on b....
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.... the import of tin plates prime OTS quality/MR type. It is difficult to appreciate why respondent No. 5 could be deprived of the same advantage in respect of the additional entitlement under column 5. The additional entitlement under column 5 is dependent on the licence holder being permitted to import tin plates prime OTS quality/MR type, and in respect of this item if advantage of paragraph 185 of the Policy is available, then there is no rational to deprive this advantage in respect of additional entitlement under column 5. Shri Lokur urged that the expression "for this purpose" in column 5 should be given appropriate weight to record a conclusion that the additional import replenishment at the rate of 15% is allowed only for import of O....