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Issues Involved:
1. Legality of amending the Advance Licence and Duty Exemption Certificate. 2. Compliance with export obligations by the petitioners. 3. Validity and enforcement of Bank guarantees. Issue-wise Detailed Analysis: 1. Legality of amending the Advance Licence and Duty Exemption Certificate: The petitioners, a Private Limited Company, challenged the amendment of their Advance Licence and Duty Exemption Certificate by the Joint Chief Controller of Imports. The original licence allowed the import of 148 Metric Tonnes of stainless steel, with a duty exemption for 131.6 Metric Tonnes. However, the Joint Chief Controller later amended this to 109.4 Metric Tonnes, with a duty exemption for 94.6 Metric Tonnes, based on revised norms for stainless steel cutlery, arguing that the petitioners were exporting stainless steel spoons, which allegedly required different norms. The court found considerable merit in the petitioners' argument that once norms were fixed and an Advance Licence issued, it was not permissible for the authorities to amend them subsequently. The court noted that the norms were published in the Import Policy, and the petitioners had acted upon them by opening irrevocable letters of credit. The Department's claim that the norms were altered was unsupported by any published decision or documentation from the Advance Licencing Committee. The court concluded that the action of amending the licence was illegal and unsustainable, entitling the petitioners to import the originally specified quantity of 148 Metric Tonnes with the duty exemption for 131.6 Metric Tonnes. 2. Compliance with export obligations by the petitioners: The Department argued that despite importing the entire quantity of 148 Metric Tonnes under the court's interim order, the petitioners failed to fulfill their export obligation within the stipulated period. The petitioners countered that they were ready to perform their obligations but were hindered by the Department's refusal to extend the period for fulfilling the export obligations. The court directed the Department to revalidate and extend the DEEC book to enable the petitioners to export 82.250 Metric Tonnes of stainless steel spoons. The petitioners were required to discharge this obligation within three months of the revalidation and report it within one month thereafter. 3. Validity and enforcement of Bank guarantees: The court addressed concerns regarding the validity of the Bank guarantees furnished by the petitioners. It was noted that the petitioners must keep the Bank guarantees in force, and the DEEC book would only be revalidated after the Department was satisfied with the guarantees' validity. The petitioners were required to file copies of the Bank guarantees in court within four weeks, and these guarantees had to remain in force for one year. Failure to discharge the export obligation or comply with the Bank guarantee requirements would allow the Import Control Authorities to take action against the petitioners, including enforcing the Bank guarantees and the bond. Judgment: 1. The impugned orders/communications (Exhibits 'Q', 'T', 'V', 'W', 'FF', and 'GG') were quashed. 2. The petitioners were entitled to import 148 Metric Tonnes of stainless steel with a duty exemption for 131.6 Metric Tonnes under their Advance Licence dated September 17, 1981, subject to the following conditions: - The petitioners must export 82.850 Metric Tonnes of stainless steel spoons within three months of the revalidation and extension of their DEEC book and report the discharge of this obligation within one month thereafter. - The petitioners must file copies of the Bank guarantees for Rs. 15,54,525/- and Rs. 10,00,000/- within four weeks, and these guarantees must remain in force for one year. - If the petitioners fail to discharge their export obligation or comply with the Bank guarantee requirements, the Import Control Authorities may take action in accordance with the law and enforce the Bank guarantees and the bond. No order as to costs.
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