TaxTMI 
TaxTMI 
2022 (11) TMI 300
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....rt of processed iron ore and is a recognised trading house. Under the Indian Foreign Trade Policy (hereinafter referred to as the 'Exim Policy') 1988-1991, there was a provision of 'additional licence' and a trading house would be eligible to 'additional licence' on the basis of the admissible exports in the preceding licensing year. Para 212 of the Exim Policy, 1988-1991 provided that in considering the eligibility of an exporter for recognition as a trading house based on Net Foreign Exchange (NFE) earnings from export of items specified in Appendix 12 shall not qualify. At the relevant time, Appendix 12 provided that export of "Minerals and ores - unprocessed" would be ineligible for considering the grant of additional licence. In the year 1990, there was a change in the Exim Policy and the Director General, Foreign Trade came out with a new policy, namely, Exim Policy, 1990-93. There was an amendment in Appendix 12 and the list of ineligible items which earlier was "Minerals and ores - unprocessed", in the new Appendix 12, it was stated to be "Minerals and ores". 2.1 It is the case on behalf of the appellant that relying upon the original Exim Policy, 1988-91 and acting upon t....
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....und that the application filed by the appellant for grant of additional licence was barred by limitation. 2.4 Aggrieved by the decision of the second appellate authority, the appellant filed a writ petition before the High Court being Writ Petition No. 286/1996. The High Court, by judgment and order dated 30.01.2001, allowed the said writ petition and quashed and set aside the order of the Additional Director General of Foreign Trade dated 12.01.1996 denying the benefit of additional licence and directed the department to pay to the appellant the premium of Rs.1,21,69,200/-. While directing so, the High Court observed and held that the appellant was eligible for the benefit under the Exim Policy during the period 1991- 92 and therefore there was no justification nor any legal basis for denying the claim on the ground of withdrawal of Policy in 1992-93 by public notice dated 29.02.1992. In sum and substance, the High Court was of the view that the subsequent change in the policy and/or withdrawal of the policy in the year 1992-93 shall not be applicable and the appellant shall not be denied the benefit of additional licence on the aforesaid ground. The judgment and order passed by ....
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....nt year, there was a change in the policy before the expiry of period of three years during which 1988-91 policy was solemnly declared to remain in force and the same came to be substituted by Exim Policy 1990-93. It is submitted that under the changed Exim Policy, in Appendix 12, "Minerals and Ores" are now declared ineligible inter alia for the purpose of additional licence. It is submitted that however as the appellant had already acted upon the Exim Policy 1988-91 and on 7.2.1990, it entered into an agreement with NKK Corporation, Japan and thereafter it exported "processed iron ore" worth Rs. 52 crores of foreign exchange earnings during April, 1990 to March, 1991, the appellant shall be entitled to the benefit of grant of additional licence as claimed under the Exim Policy, 1988-91. 3.4 It is further submitted that applying the doctrine of promissory estoppel, the appellant shall be entitled to the benefit of grant of additional licence on the export of the "processed iron ore". It is submitted that while negotiating and agreeing for price with the importer, it factored in the price component, the incentive of additional licence which was in force at the time under the preva....
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....romissory estoppel shall not be applicable at all, more particularly when the incentive is withdrawn in the subsequent/new policy. It is submitted that therefore as rightly observed by the High Court, where the appellant is found to be ineligible to get the benefit of additional licence on the export made during the new Exim Policy, 1990- 93, the appellant shall not be entitled to the benefit of additional licence. 4.2 Now so far as the submission on behalf of the appellant that some other similarly situated exporters are granted the benefit of additional licences is concerned, it is submitted that there cannot be any negative discrimination pleaded and claimed. It is submitted that merely because some benefits might have been given wrongly to some other persons/exporters, the appellant cannot claim parity and pray for the similar benefits. Once, it is held that the appellant is not entitled to additional licence on export of "processed iron ore", the appellant shall not be entitled to the benefit of additional licence as claimed, which otherwise is not entitled to on merits. 4.3 Making the above submissions, it is prayed to dismissed the present appeal. 5. We have heard learned....
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....90-93 is held to be applicable under which on export of 'Minerals and Iron Ore", there shall not be any benefit of additional licence, the appellant cannot be permitted to claim the benefit of additional licence under the old Exim Policy, which was not in existence. 7. Now so far as the submission on behalf of the appellant on doctrine of promissory estoppel is concerned, it is required to be noted that the benefit of additional licence was in the form of an incentive. The DEFT/Union is free to change the Exim Policy and consider from time to time on which items there shall be an incentive and on which items there shall not be any incentive. To grant the benefit of an incentive is a policy decision which may be varied and/or even withdrawn. No exporter can claim the incentive as a matter of right. Under the circumstances, the doctrine of promissory estoppel shall not be applicable to such a policy decision with respect to incentive, more particularly when it is well within the right of DGFT/appropriate authority/Union to come out with a new Exim Policy. Under the circumstances, the submission on behalf of the appellant that as the appellant placed the order with NKK Corporation, J....