TaxTMI 
TaxTMI 
2003 (1) TMI 114
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....terms of the said Circular. Union of India was directed to work out the amount payable subject to the respondents producing the Bank Certificate in respect of the realisation of foreign exchange of export proceeds. 2.The facts which are common to all the appeals being similar are taken from the appeal : Union of India v. Chowgule & Co. Ltd. & Others. 3.Respondent is a limited company incorporated under the Companies Act, 1956. It is engaged, inter alia, in the export of processed iron ore of Goan origin. It is also recognised as a trading house. Under the Import Export Policy for April 1988-March 1991 (hereinafter referred to as 'the old policy') trading houses were eligible for the benefit inter alia of additional licences of defined value against the export of processed iron ore under the policy. Old policy was terminated and instead a new policy starting w.e.f. April 1990-March 1993 (for short 'the New Policy') was introduced. During the period 1-4-1989 to 31-3-1990 the respondents had exported processed iron ore of the value of Rupees 21,92,15,711.69. On 4-6-1990 the company applied to the Assistant Chief Controller of Imports & Exports for additional licence of a value o....
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....the respondents were entitled to under the Circular 11 of 1993. 7.The respondents in their writ petitions raised three-fold contentions, firstly, it was urged on their behalf that by exporting processed iron ore during the period 1-4-1989 to 31-3-1990 under the import export policy for the years 1988-1991 (old Policy), they had acquired a vested right to get additional licence in the licensing year April-March 1990-1991 of the value prescribed in the import export policy relevant for April 1988-March 1991 and the said right could not be defeated by the provisions of the new policy. Secondly, it was contended that on a true construction of the relevant provisions of the import export policy for April 1990-March 1993, in particular, paragraph 220 thereof, the respondents were entitled to additional licence for the licensing year April 1990-March 1991 against exports of processed iron ore made in the preceding licensing year, i.e., April 1989-March 1990 and that the authorities have misconstrued the relevant provisions. Thirdly, it was contended that the Union of India was precluded by the doctrine of Promissory Estoppel for denying the additional licence to the company during the ....
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....could not be invoked and the same was not applicable to the facts of the case. It was maintained that the application for additional licence made by the respondents was rejected in accordance with the position of law as it obtained on that date. 9.It may be highlighted that appellants did not dispute that the respondent's company was a recognised Trading House. The extent of export of processed iron ore made by the respondents between 1-4-1989 to 31-3-1990 and the value thereof stated in the writ petition were not controverted. The value shown by the respondents for the purpose of additional licence was also not disputed. No issue as regards the net foreign exchange earnings as may have been earned against the export of iron ore was raised. Except from contending that the respondents were ineligible for grant of additional licence as per the new policy it was not stated that the application for licence was liable to be rejected on any other ground. Issuance of the Circular 11 of 93 for payment of premium in the manner provided instead of additional licence to which the applicant may have been entitled to was also not disputed. 10.The High Court by the impugned order independe....
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.... of the paragraph is not material and therefore is not being set out. Sub-paragraph (2) laid down that the additional licence shall be valid for the export of the items listed thereunder. Sub-paragraph (8) provides that the items permissible shall be those eligible under the policy on the date of issue of the licence. Paragraph 218, inter alia, provides that where the applications for additional licence have not been disposed of by 31st March of the preceding licensing year, the rate of entitlement will be the same as permissible during the licensing year to which the applications pertained but the items to be allowed will be as per the import policy on the date of the licence. Appendix 12 of the old policy does not list iron ore as ineligible product for import replenishment licence or additional licence. 13.Paragraph 204 of Chapter XV of the new policy provides that in the case of exports made prior to 1-4-1990 against which REP licence was issued on or after 1-4-1990, the rate of import replenishment will be as admissible on the date of export but subject to the conditions laid down in 1988-1991 policy book. Chapter XVI deals with deemed exports. Under paragraph 210 the deeme....
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....g adjudicated then the licence has to be issued as per the relevant policy provisions prevailing during the period to which the additional licence relates which in the present case would be under the old policy. The grant of additional licence in paragraph 222 has been made subject to the condition that the permissibility of the items allowed for import against such licences will be governed by the relevant provisions of the import policy in force at the time of their actual import meaning thereby that the items which can be imported would be relatable to the import policy in force, i.e., the new policy. Transitional arrangements stated in Paragraph 222 makes it abundantly clear that the applications from export houses/trading houses which have not been finally disposed of by the end of the licensing year would be entitled to the issuance of the additional licence as per the relevant policy provisions prevailing during the period to which the additional licences related. The entitlement of the export houses/trading houses to get the additional licence has not been taken away. The only condition to which the additional licence has been subjected is that the permissible items allowab....