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Issues:
- Export contract fulfillment and advance license issuance - Ban on import and clearance of Tallow affecting license terms - Requests for license amendments and revalidation - Denial of revalidation and substitution by authorities - Appeal rejection and filing of petition challenging authorities' decision Analysis: 1. The petitioners entered into an export contract with USSR for 1,000 Metric Tonnes of Taj Toilet Soap, securing an advance license for importing raw materials. Despite exporting 975 metric tonnes by July 1983, the ban on Tallow import in 1983 hindered further imports under the license valid until April 1984. 2. Following the ban, the petitioners requested license amendments, including substituting inedible tallow with Palm Kernel Oil (PKO) and revising the export obligation to 975 metric tonnes. However, authorities only amended the license to exclude tallow, redirecting the petitioners to the Chief Controller for PKO import approval. 3. Despite continuous representations for revalidation and substitution, authorities denied the requests citing policy limitations. The petitioners' subsequent appeal was rejected without reason, prompting them to file a petition in March 1986 alleging arbitrary actions by the authorities. 4. The Court noted that the petitioners fulfilled their export obligation and acted in good faith, seeking a reasonable substitution due to the ban on tallow. Authorities' failure to provide a valid reason for denial was deemed arbitrary, especially considering the policy's provisions for revalidation extensions. 5. The Court emphasized the principle of equity and estoppel, highlighting the Government's duty to honor promises made in policies like Appendix-19. The petitioners' compliance with export obligations based on such promises entitled them to the benefit of duty-free imports, which authorities unlawfully denied. 6. Ultimately, the Court ruled in favor of the petitioners, directing authorities to revalidate the license within two weeks and allowing the import of Palm Kernel Oil and Palm Stearine instead of inedible tallow. The judgment emphasized the petitioners' entitlement to the import benefits under the policy, given their compliance with export obligations.
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