1986 (8) TMI 332 - HC - Customs

Summary

Issues:
1. Grant of Export House Certificate and additional license.
2. Rejection of application for endorsement of REP licenses.
3. Contention regarding the validity period of REP licenses.
4. Possibility of acquiring REP licenses after obtaining Export House Certificate.
5. Validity and revalidation of REP licenses.

Analysis:

Issue 1: Grant of Export House Certificate and additional license
The petitioner, a proprietary firm engaged in diamond import and export business, applied for an Export House Certificate for the year 1981-82, which was initially rejected. However, the court directed the respondents to grant the certificate and consider the application for an additional license as well. The Export House Certificate was issued in February 1983, and the petitioner subsequently applied for the additional license. The court held that the petitioner was entitled to the additional license based on possessing a certificate from the Federation of Indian Exports Organisation, negating the requirement for an RCMC certificate.

Issue 2: Rejection of application for endorsement of REP licenses
The petitioner also sought endorsement of REP licenses purchased during the relevant period, but the application was rejected on the grounds of expiration. The court determined that the rejection was unjust as the petitioner should have been entitled to all facilities under the Export House Certificate for the year 1981-82, including the endorsement of REP licenses.

Issue 3: Contention regarding the validity period of REP licenses
The respondents argued that only REP licenses valid during the period of the Export House Certificate could be endorsed. However, the court disagreed, stating that facilities available under the Import Policy of 1981-82 should be accessible to the petitioner, even if the certificate was granted later. The court emphasized that all facilities associated with the Export House Certificate for the relevant year should be restored to the petitioner.

Issue 4: Possibility of acquiring REP licenses after obtaining Export House Certificate
The respondents suggested that the petitioner acquired REP licenses after obtaining the Export House Certificate, implying that the licenses might have been purchased post-certificate issuance. The court deemed this improbable, highlighting that valuable licenses like REP licenses are typically utilized or sold promptly, making it unlikely that the petitioner bought expired licenses.

Issue 5: Validity and revalidation of REP licenses
The court directed the endorsement and revalidation of REP licenses for six months from the date of endorsement, ensuring that the petitioner could benefit from the facilities associated with the Export House Certificate for the year 1981-82. The authorities were instructed to complete the endorsement and revalidation process within 60 days of the petitioner's resubmission of the application.

In conclusion, the petition was allowed, and the court upheld the petitioner's claims for the endorsement and revalidation of REP licenses, along with the issuance of the additional license within a specified timeframe.