TaxTMI 
TaxTMI 
1990 (1) TMI 80
X X X X Extracts X X X X
X X X X Extracts X X X X
....petitioner insists is a valid licence. The petitioners also contend that under the said licence, the petitioners are entitled to import marble slabs for the purpose of manufacturing marble tiles in their factory, which is covered by S.S.I. Registration. 3. The 1st petitioner company is the holder of a split up licence dated 7th of July 1987, being the transferee of the same in due course. The original licence was in the name of a firm called Cimmco International having its office at Kasturba Gandhi Marg, New Delhi. It has been mentioned that the original licence held by the said Cimmco International was for a sum of Rs. 30,00,000/- and it was subsequently split up into six licences, each having value of Rs. 5,00,000/-. This licence, a copy of which is annexed to this petition at Ex. 'A', shows that it is issued to the licence holder as a "Deemed Exports Manufacturer Exporter". It is a REP licence given in view of the fact that the original licence-holder had exported items described as A.75 (1) which are admittedly railway equipments. The goods which were allowed to be imported under this licence are raw materials, components, consumable spares and packing materials as per Parag....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... petition has been heard today and is being disposed of by this judgment and order. 7. The respondents' case is that under this split up import licence, which is held by the 1st petitioner company as the transferee of the original licence holder, the petitioners are not entitled to import marbles because, according to the respondents, the marbles could not have been imported by the original licence holder himself. Though at one time against the same import licence some marbles were cleared, subsequently, realising that the import licence read in the light of Paragraph 30 of the Import Trade Control Policy for the year 1977-78 could not have permitted the 1st petitioner to import marbles, the order of seizure has been passed and subsequent steps under the law are contemplated. 8. At one time, the authorities in Bombay thought that the marble goods could be imported by the 1st petitioner, the 1st petitioner being the manufacturer of marble tiles. That is why probably they had allowed clearance of some consignments earlier under the import licence. Subsequently, some doubts were raised in the department and the department sought a clarification from the office of the Chief Contr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lly mentions that REP licences issued to different categories of exporters and their transferees will be valid for import of raw materials, components, packing materials and consumable stores as laid down in the Policy. 10. Paragraph 30, in so far as is material for the purpose of disposing of this petition, reads as follows:- "30. (1) If a manufacturer-exporter obtains the REP licence in his own name against his own exports, the licence will be valid for import of any raw materials, components, consumable stores and packing materials required for use in the licence-holder's factory. The licencee shall be subject to 'Actual User' condition." 11. From a bare reading of this provision, it is reasonable to infer that the holder of a REP licence can import raw materials and other things mentioned therein which are required for use in his own factory. However, it is not mentioned that the goods which he is allowed to import under the REP licence should have any relationship with the goods which he has exported and in recognition of which exports he has been given the REP licence. In other words, the person who obtains the REP licence might have exported a particular commodity a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as distinguished from the factory of the original licence-holder. In order to find answer to this question, certain things ought to be noted. Prior to 1977-78, there used to be a shopping list attached to the REP licences. That system of annexing a shopping list to the REP licences has been discontinued from 1977-78. It has been so stated in Paragraph 29 of the Import Policy of 1977-78. One is not aware as to why this system was discontinued. If that system were in vogue, then naturally the transferee of the licence, the licence being freely transferable, would have been posted with the knowledge that under the licence he would be entitled to import only particular articles. If his own factory was incapable of utilising the articles in the manufacture, then naturally he would not get the licence transferred in his name in any way. It is only when he had the facility for manufacturing an article by utilising the materials mentioned in the shopping list that he would get the import licence transferred in his name. In such a case, it was not even necessary for him to make inquiries to find out whether the materials which were covered by the import licence were the materials which coul....
X X X X Extracts X X X X
X X X X Extracts X X X X
....EP licence to restrict him to the import of such materials which could have been used in the factory of the original licence-holder. This is for the simple reason that the transferee of this licence would not be able to find out as to which raw materials, consumables and components could have been utilised in the factory of the original licence-holder. If the authorities intended that the import should be restricted only to those items which were exported, it would have been very easy for the transferee to find out the same because in the import licence the item of export is mentioned. It is the view of the department itself that the import is not restricted to only those items which went into the manufacture of the export item but imports could be made of any other articles which could be utilised for the manufacture of any other article in the factory of the licence-holder. In such a case, how would the transferee of a REP licence be posted with the knowledge of the articles which he is entitled to import under the transferred licence? The practical difficulties that would be created on a particular interpretation of a provision have got to be taken into consideration while inter....