TaxTMI 
TaxTMI 
1996 (5) TMI 413
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....ns Act, 1992. The Government of India, Ministry of Commerce evolved 1992-93 Export and Import Policy declaring that the export policy to augment productivity, modernization and competitiveness of the Indian agriculture industry and service. For the year 1994- 95, export policy for the readymade garments was notified in notification No.1 1-29-93 dated September 4, 1993. The policy classified allotment under heads, namely (a) Past Performance Entitlement (for short, 'PPE'); and (b) Manufacturer Export Entitlement (for short, 'MEE'); and (c) Non-quota Exporters Entitlement (for short, 'NQE'). The Uruguay round of negotiations of the GATT received final approval of the negotiations incorporating separate agreements to diverse sectors including ....
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....given promise that all those who performed their applications MEE were entitled to NQE quota and that, therefore, the respondents are estopped to recile from the promise made to them. They cannot act in a way detrimental to their legitimate expectations. We find no force in the contention. It is seen that the change in the policy is as a result of GAAT agreement with all contracting countries. The quota system was available to export garments and clothing to European countries, viz., U.S.A, Canada, Norway etc. The Government took the policy that with a view to meet more competitive quality in the foreign markets introduced FCFS system giving 20% of the export. PPE was provided with 80% of the export. The new dynamism in the policy would ma....
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....lothing has severely suffered at the 1994 end onwards. The Government, therefore, took policy to abolish NQE system so that the genuine quota exporters could do business so as to stop the malady and to preserve PPE and FCFS system. In the light of the above policy question emerges whether the Government is bound by the previous policy or whether it can revise its policy in view of the changed potential foreign markets and the need for earning foreign exchange? It is true that in a given set of facts, the Government may in the appropriate case be bound by the doctrine of promissory estoppel evolved in Union of India Vs. Indo-Afghan Agencies [(1968) 2 SCR 366]. But the question revolves upon the validity of the withdrawal of the previous pol....
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....ate of the grant of the licence or permit. The authority concerned may be in a better position to have the overall picture of diverse factors to grant permit or refuse to grant permission to import or export goods. The decision, therefore, would be taken from diverse economic perspectives which the executive is in a better informed position unless, as we have stated earlier, the refusal is mala fide or is an abuse of the power in which event it is for the applicant to plead and prove to the satisfaction of the Court that the refusal was vitiated by the above factors. It would, therefore, be clear that grant of licence depends upon the policy prevailing as on the date of the grant of the licence. The Court, therefore, would not bind the Gov....