1985 (12) TMI 266 - HC - Customs

Issues Involved:
1. Entitlement of respondents to import non-debit open general licence (OGL) items.
2. Validity of the imprest licence.
3. Balance availability in the customs copy of the licence.
4. Provision in the 1983-84 Import-Export Policy for endorsement of the imprest licence.
5. Applicability of paragraph 185(7) of the Import-Export Policy, 1982-83, to the import of OGL items under paragraph 185(4).

Issue-wise Detailed Analysis:

1. Entitlement of Respondents to Import Non-debit OGL Items:
The core issue was whether the respondents were entitled to import non-debit OGL items under the Import-Export Policy of 1982-83. The respondents had fulfilled their export obligations under an imprest licence but not within the initially stipulated period. The court examined paragraph 185(4) of the Import-Export Policy, 1982-83, which allowed export houses to import OGL items after fulfilling their export obligations. The court noted that the respondents had complied with their obligations, albeit after an extended period, and were thus entitled to the benefits under paragraph 185(4).

2. Validity of the Imprest Licence:
The appellants contended that the respondents' imprest licence was not valid beyond its initial period. The court found that the respondents' licence, issued on 29.4.1982, was valid for 12 months, and the respondents had performed their export obligations within the extended period. The court held that the extension of the licence period was legitimate and the respondents' import of OGL items under the extended licence was valid.

3. Balance Availability in the Customs Copy of the Licence:
The appellants argued that there was no balance available in the customs copy of the licence. The court did not find this argument substantial enough to invalidate the respondents' entitlement to import OGL items. The focus was on whether the respondents had fulfilled their export obligations, which they had, albeit with an extension.

4. Provision in the 1983-84 Import-Export Policy for Endorsement of the Imprest Licence:
The appellants argued that the 1983-84 Import-Export Policy did not provide for the endorsement of the imprest licence for importing OGL items. The court referred to a similar case where the rejection of a similar application was overturned. The court emphasized that the endorsement of the imprest licence for importing OGL items was permissible under the 1982-83 policy, and the subsequent policy did not negate this entitlement.

5. Applicability of Paragraph 185(7) of the Import-Export Policy, 1982-83:
The appellants contended that paragraph 185(7) restricted the import of OGL items to within the validity of the OGL or the import licence itself, whichever was earlier. The court analyzed the language and intent of paragraphs 185(4) and 185(7). It concluded that paragraph 185(7) did not apply to the import of OGL items under the facility given to imprest licence holders by paragraph 185(4). The court emphasized that paragraph 185(4) specifically allowed for the revalidation of the licence to import OGL items, even beyond the original policy period, to fulfill the export obligations.

Conclusion:
The court dismissed the appeal, affirming the respondents' entitlement to import OGL items under the extended imprest licence as per paragraph 185(4) of the Import-Export Policy, 1982-83. The court found no reason to interfere with the impugned order of the learned single Judge, emphasizing the harmonious reading of the policy provisions to support the respondents' position. The court did not address the broader question of whether delayed export obligations should grant entitlement to import OGL items, as this issue was deemed concluded by the Supreme Court.

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