1990 (7) TMI 237 - HC - Customs

Summary

Issues:
1. Refusal to grant subsidiary license for import license granted in 1983-84.
2. Incorrect conditions inserted in the import license granted in 1984.
3. Failure to attach slips to import licenses granted in 1985, 1986, 1987, and 1988.

Analysis:

Issue 1: Refusal to grant subsidiary license
The petitioner applied for a subsidiary license in accordance with the Import Policy of 1983-84, which entitled the petitioner to the subsidiary license. The respondents refused to grant the subsidiary license citing a change in policy effective from April 1, 1988. However, the court held that the petitioner was entitled to the subsidiary license as long as the value of the original import license was not exhausted within 18 months. The delay in approaching the court was not a valid ground to deny the relief sought by the petitioner.

Issue 2: Incorrect conditions in the import license of 1984
The petitioner's import license granted in 1984 had conditions inserted, deleted, and then restored, which was found to be in contravention of the Import Policy of 1984. The court agreed with the petitioner that the insertion and restoration of conditions were incorrect. The court directed the respondents to correct the license by deleting the improper condition.

Issue 3: Failure to attach slips to import licenses of 1985, 1986, 1987, and 1988
The import licenses granted for these years did not have attached slips initially, rendering them unusable. The court held that the validity period of these licenses should commence from the date of attachment of the slips. The court directed the respondents to extend the validity of these licenses for three months from the date of amendment to compensate for the delay caused by the court proceedings.

In conclusion, the court granted the following reliefs to the petitioner:
(a) Issuance of subsidiary license for the import license of 1983-84 within four weeks.
(b) Correction of the import license of 1984 by deleting improper conditions within four weeks.
(c) Declaration that the validity period of import licenses for 1985, 1986, 1987, and 1988 should commence from the date of attachment of slips, with an extension of validity for three months from the date of amendment. The respondents were directed to carry out the necessary amendments within four weeks.

The rule was made absolute with no order as to costs.