TaxTMI 
TaxTMI 
1991 (8) TMI 300
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....ade by manufacturers/ exporters under certain schemes pursuant to procedures laid down thereunder and issued by the Controller of Imports and Exports, depending on the export performance of the manufacturer/importer. The REP licence so issued can be used by the manufacturers or importers to import goods to replenish materials used in production of goods which were exported or for further production of goods which are to be exported, or that such licences can be freely transferred or disposed of to any person and permission or licence of the licensing authority is not required. The conditions subject to which the REP licences were issued are binding on the purchasers of such licences from the manufacturers or importers and he will be entitle....
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....e products exported and to allow certain flexibility to enable diversification of the export products. 5.. Applications for issue of REP licences are made by manufacturers/ exporters under the scheme as per the procedures laid down thereunder and the REP licences were issued by the Controller of Imports and Exports based on the export performance of the manufacturer/importer. The REP licences so issued can be used by the manufacturers/importers to import goods to replenish materials used in production of goods which were exported or for further production of goods which are to be exported or such licences can be freely transferred/disposed of to any person, and permission or endorsement of the licensing authority is not required. The lic....
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....ners is based on their export performance and foreign exchange realisation and is an entitlement in the nature of a grant which confers on the petitioners the right to import goods and is therefore an actionable claim falling within the definition under section 3 of the Transfer of Property Act and consequently does not fall within the definition of "goods" defined under the Act. Elaborating further, it is submitted that the REP licence being only a claim to a beneficial interest in a movable property, was an actionable claim and that therefore excluded the price realised on sale of the same while computing tax under the Act. It is further contended that the basis upon which the respondents want to treat such import licences as goods is the....
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....of the land which are agreed to be severed before sale or under the contract of sale." So, goods are defined as all kinds of movable property except (1) newspapers, (2) actionable claims and (3) stocks, shares and securities. The petitioners contend that at best the import licence could be considered to be only an actionable claim and nothing more. Section 3 of the Transfer of Property Act defines actionable claim to mean any secured debt or beneficial interest in movable property not in possession actual or constructive, whether present or future, conditional or contingent. 6.. Let me now proceed to examine the nature of the import licence. By virtue of the provisions of the Imports and Exports (Control) Act, 1947, no person e....