Case Note & Summary
The petitioners, M/s. Videocon International Ltd. and Mr. Maheshwar V. Kasbekar, were manufacturers of colour TVs, videos, and other electronic items. They imported Colour Picture Tubes (CPT) and Video Tape Deck Mechanism (VTDM) under Additional Licenses purchased by transfer, all dated prior to 21-3-1989. These licenses were endorsed under Para 215 of the AM-88-91 Policy, permitting imports of items listed under Appendix 6, List 8, Part-I as on the date of issue of the licenses. On 21-3-1989, Public Notice No.109 deleted CPT and VTDM from Appendix 6, List 8, Part-I. On 28-5-1990, while the petitioners were importing these items against the said licenses and customs had allowed clearance, the Respondent No.4 (Joint Chief Controller of Imports & Exports) issued an abeyance order with a show cause notice asking why the petitioners should not be debarred from importing the items. The petitioners challenged this in Writ Petition No.1843 of 1990, which was disposed of on 26-6-1990 with a stay of the abeyance order and liberty to the respondent to adjudicate. On 25-9-1990, the respondent passed a debarment order. The petitioners appealed, and the Additional Chief Controller of Imports & Exports set aside the debarment on 31-1-1991, holding that imports under the Additional Licenses despite the public notice were valid. The Respondent No.3 (Chief Controller of Imports & Exports) appealed to the Central Government, which on 5-4-1991 granted an ex parte stay of the appellate order. The petitioners then filed the present writ petition challenging the interim stay order. The court considered the validity of the imports and the debarment. It held that since the licenses were issued prior to the public notice and the policy permitted imports of items listed as on the date of issue, the imports were valid. The debarment order was not sustainable. The court allowed the writ petition, setting aside the interim stay and effectively upholding the appellate order.
Headnote
A) Import and Export Control - Additional Licenses - Validity of Imports - Public Notice - The issue was whether imports of Colour Picture Tubes (CPT) and Video Tape Deck Mechanism (VTDM) under Additional Licenses issued prior to Public Notice No.109 dated 21-3-1989 (which deleted these items from Appendix 6, List 8, Part-I) were valid. The court held that the imports were valid as the licenses were issued before the public notice and the policy permitted imports of items listed as on the date of issue of the licenses. The debarment order was set aside. (Paras 1-4) B) Import and Export Control - Debarment Order - Show Cause Notice - The court considered whether the debarment order passed by the Joint Chief Controller of Imports & Exports was sustainable. The appellate authority had set aside the debarment, but the Central Government granted an interim stay. The High Court allowed the writ petition, effectively upholding the appellate order. (Paras 2-4)
Issue of Consideration
Whether imports made under Additional Licenses issued prior to a public notice deleting the imported items from the permissible list are valid, and whether the debarment order based on such imports is sustainable.
Final Decision
The court allowed the writ petition, setting aside the interim stay order dated 5-4-1991 passed by the Central Government and upholding the appellate order dated 31-1-1991 which set aside the debarment order.
Law Points
- Validity of imports under Additional Licenses despite subsequent public notice deleting items from Appendix 6
- List 8
- Part-I
- Doctrine of vested rights
- Interpretation of import policy provisions
