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Issues involved: Challenge against communication by Director General of Foreign Trade denying transitional arrangements under para 1.6 of the FTP for import of marble slabs due to absence of LCs.
Factual Background: Petitioner engaged in import of marble slabs, entered into a contract for import with a Chinese supplier. Customs accepted the contract, and partial imports were made. Subsequently, an amendment restricted import of certain goods. Petitioners applied for permission to import remaining quantity under the contract, but DGFT refused. Submissions: Petitioner's counsel argued that the contract was genuine, already executed partially, and payments made through banking channels. Emphasized the importance of irrevocable LC for sanctity of the contract. DGFT's refusal was challenged for lack of reasons and non-application of mind. Counter-arguments: Respondent's counsel contended that fiscal policies are in public interest, and interference by courts should be limited unless fraud or lack of bonafides is proven. Cited judgments supporting this stance. Consideration: Court noted the purpose of requiring irrevocable LC before imposition of restrictions was to prevent manipulation. Found no evidence of petitioner attempting to take advantage or bypass the modified policy. DGFT's refusal lacked reasoning and did not consider the genuine nature of the contract. Judgment: The court quashed the communication denying permission, remitted the matter back to DGFT for reconsideration, and directed a time frame for contract completion if permission granted. Petition allowed with no costs.
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