TaxTMI 
TaxTMI 
1994 (11) TMI 206
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....for import into India of raw materials, components and consumables by actual users (industrial) subject to certain conditions which included the following:- "22. Items covered under Part-III of the Schedule to this licence can be imported under OGL by Actual Users (Industrial) and others, for stock and sale;" "26.  Such goods are shipped on through consignment to India on or before 31st March, 1984 or, in the case of Actual Users (Industrial) on or about 30th June 1984 against confirmed orders for which irrevocable letters of credit are opened and established on or about 29-2-1984 with no grace period whatsoever." 3. Split stearin fatty acids were not a canalised item under that Policy. The appellants entered into a contra....
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....endment, that is, of shipments of which transit had already commenced from the country of origin. The shipment in question arrived at Bombay on 9-2-1984 and it is not the appellants' case that this shipment falls within the exception indicated above. This being so, the shipment of fatty acids in the present case, not being covered by the exception made in the amendment to the Policy effective from 11-11-1983 and the import being not through the State Trading Corporation, the appellant has been denied the benefit of its import being covered by the Policy prior to its amendment. 4. The appellants filed a writ petition in the Bombay High Court challenging the amendment made by the public notice dated 11-11-1983. That writ petition having....
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....el submits that opening of an irrevocable letter of credit prior to issue of the public notice being lawful, its consequence could not be made unlawful by a subsequent amendment of the Policy. Learned counsel also submitted that amendment of the Import Policy by issue of a public notice can be only prospective, but in this manner it has been made retrospective. Shri Subba Rao, learned counsel for the Central Government submitted that the exception is applicable only to such goods which were already in transit on account of the shipments having been made; and the only consequence of the amendment is an increase in the tax which is not violative of Articles 14 and 19 of the Constitution. 7. We are unable to accept the submissions of the....
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....ment of the Policy by the public notice dated 11-11-1983 in a manner not permitted by the amended Policy, the appellants cannot claim to avoid the logical consequences of the import being made contrary to the import policy prevailing at the time of import of the goods. Exemption under the amended Policy being limited to shipments already made cannot be termed unreasonable or unduly restrictive. Obviously, the exception was made to cover only those goods of which the shipment had been made and were in transit, excluding all such goods of which no shipment had been made. The classification between goods in transit and those of which the transit had not begun, cannot be called irrational or unreasonable in the context. 9. Reliance by Shr....