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Issues:
Challenge to the legality of orders passed by Joint Chief Controller of Imports and Exports and Chief Controller of Imports and Exports regarding quota licences for arms and ammunition. Analysis: The petitioner, an established importer of arms and ammunition, challenged the legality of orders dated October 19, 1978, and March 30, 1979, passed by the Joint Chief Controller of Imports and Exports and the Chief Controller of Imports and Exports, respectively. The petitioner held quota licence certificates for arms and ammunition and applied for quota licences based on these certificates. The authorities granted the licences but with a 25% deduction from the entitlement. The appeals against this deduction were dismissed based on the absence of provisions for established importers in the AM-79 Policy Book and the canalisation of arms and ammunition through S.T.C. as per the Import Policy Book of April 1979. The petitioner argued that the reliance on paragraph 199 of Policy Book AM-79 was erroneous as the licences were granted before April 1, 1978, and hence, the automatic rejection clause did not apply. The court agreed that the authorities' reliance on this paragraph was incorrect and that the petitioner should not be deprived of entitlement under the 1977-78 Policy Book. The Department contended that canalisation of arms and ammunition through S.T.C. in the April 1979 Policy Book justified the 25% deduction. However, the court disagreed, stating that canalisation alone did not warrant the deduction. The petitioner was entitled to the full quota licence without any reduction as per the 1977-78 Policy Book, unless the item was banned under the relevant policy. The court held in favor of the petitioner, directing the respondents to issue the licence without deducting 25% of the entitlement as per the Import Policy of 1977-78. The petition succeeded, and no costs were awarded in this case.
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