1992 (4) TMI 135 - HC - Customs

Issues Involved:
1. Applicability of the Supreme Court decision in M/s. Oswal Woollen Mills case to transferees of REP Licences under the Import Policy, 1981-82.
2. Applicability of the Supreme Court decision in M/s. Oswal Woollen Mills case to transferees of REP Licences under the Import Policy, 1980-81.
3. Applicability of the Supreme Court decision in M/s. Oswal Woollen Mills case to transferees of REP Licences under the Import Policy, 1982-83.
4. Validity of circulars issued by the Respondent No. 4 in light of the Supreme Court decision.
5. Entitlement of petitioners to import specific items under REP Licences.

Detailed Analysis:

1. Applicability of the Supreme Court decision in M/s. Oswal Woollen Mills case to transferees of REP Licences under the Import Policy, 1981-82:

The Supreme Court decision in M/s. Oswal Woollen Mills Ltd. v. Union of India & Others (AIR 1983 S.C. 969) was analyzed to determine if it was confined to the specific case or had general application. The Court held that the decision is of general application and applies to all transferees of REP Licences under the Import Policy, 1981-82, provided other conditions are met. The Court clarified that the decision was based on a close reading of the relevant provisions of the Import Policy, 1981-82, and not limited to the specific case.

2. Applicability of the Supreme Court decision in M/s. Oswal Woollen Mills case to transferees of REP Licences under the Import Policy, 1980-81:

The relevant paragraphs of the Import Policy, 1980-81 (paras 131(1), 133, and 174(11)) were compared with those of the Import Policy, 1981-82. The Court found them to be identical, thereby extending the ratio of the Supreme Court decision in M/s. Oswal Woollen Mills to transferees of REP Licences under the Import Policy, 1980-81 as well.

3. Applicability of the Supreme Court decision in M/s. Oswal Woollen Mills case to transferees of REP Licences under the Import Policy, 1982-83:

The Court noted a material difference in the relevant paragraphs of the Import Policy, 1982-83 (paras 138 and 140) compared to the Import Policy, 1981-82. Specifically, the words "against their exports of products manufactured by them" were added in para 138(1) of the Import Policy, 1982-83. This change indicated that the special facilities under para 138 were not transferable, thus the ratio of the Supreme Court decision in M/s. Oswal Woollen Mills does not apply to transferees of REP Licences under the Import Policy, 1982-83.

4. Validity of circulars issued by the Respondent No. 4 in light of the Supreme Court decision:

The Court found the circulars issued by Respondent No. 4 (Circular No. 53 of 1983 and the circular dated 19-11-1983) to be unjustified. These circulars attempted to limit the applicability of the Supreme Court decision to the specific case, which the Court ruled was an attempt to defy the binding effect of the Supreme Court's decision. The Court emphasized that under Article 141 of the Constitution, the law declared by the Supreme Court is binding.

5. Entitlement of petitioners to import specific items under REP Licences:

The Court acknowledged the difficulty in examining the eligibility of each petitioner due to the lack of relevant factual information and affidavits. The Court directed the petitioners to apply to the concerned authorities with requisite information for necessary endorsement/clearance or permission. The authorities were instructed to scrutinize the claims in light of this judgment and relevant provisions of the Import Policy, and to pass reasoned orders within two months.

Conclusion:

The writ petitions were allowed to the extent indicated, with no order as to costs. The Court directed the petitioners to apply to the concerned authorities for necessary endorsements, and the authorities were instructed to scrutinize and decide on the claims within two months.

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