Case Note & Summary
The dispute arose between a manufacturer-exporter and the Union of India regarding the transfer and endorsement of a Replenishment Licence under the Import Policy, 1981-82. The appellant, Oswal Woollen Mills Ltd., acquired a Replenishment Licence by transfer from another manufacturer-exporter and sought endorsement to import raw materials. The third respondent rejected the request based on a Circular that mandated endorsements only for licences issued against the applicant's own exports. The High Court dismissed the appellant's writ petition challenging this rejection. The Supreme Court found that the Circular improperly altered the Import Policy and that the refusal to endorse the licence was not supported by the policy's provisions. The court clarified that the Replenishment Licence could be transferred and endorsed for imports as per the policy, allowing the appeal and quashing the Circular and the High Court's order. The court emphasized that the conditions imposed by the Circular were not present in the relevant paragraphs of the Import Policy, thus ruling in favor of the appellant.
Headnote
A) Administrative Law - Circular Validity - The Circular dated 31.8.1981 is invalid as it attempts to impose conditions not found in the Import Policy, 1981-82 - Import Policy, 1981-82, Paragraph 138(1) - The court held that the Circular cannot amend the Import Policy and the refusal of endorsement based on it was unwarranted (Paras 370-372).
Issue of Consideration
Whether endorsement on a Replenishment Licence can be refused on the ground that it was not issued against the export of the applicant's own products.
Final Decision
The Supreme Court allowed the appeal, quashed the Circular dated 31.8.1981, and directed that the endorsement on the Replenishment Licence be made as requested by the appellant.
Law Points
- Import Policy
- Replenishment Licence
- Transfer of Licence
- Endorsement
- Actual User Condition
