- (1.) Leave granted in all the special leave petitions. Civil Appeal No. 7153 of 1994 (arising out of SLP (C) No. 20837 of 1993).
(2.) The Import and Export Policy for the period 1-4-1993 to 31-3-1994 was declared by the Central Government by issue of an order in exercise of the powers conferred by Section 3 of the Import and Export (Control) Act, 1947 giving general permission for import into India of raw materials, components and consumables by actual users (industrial) subject to certain conditions which included the follwing :- "22. Items convered under Part-III of the Schedule to this licence can be imported under OGL by Actual Users (Industrial) and others, for stock and sale;" "26. Such goods are shipped on through consignment to India on or before 31st March, 1984 or, in the case of Actual Users (Industrial) on or about 30th June; 1984 against confirmed orders for which irrevocable letters of credit are opened and established on or about 29-2-1984 with no grace period whatsoever."
(3.) Split stearin fatty acids were not a canalised item under that Policy. The appellants entered into a contract with a foreign supplier for import of fatty acids on 1-8-1983 and on 3-10-1983, opened an irrevocable letter of credit in favour of the foreign supplier. On 11-11-1983, the Central Government issued a public notice amending the said Policy for the period April 1983 to March 1984 whereby the import of fatty acids became a canalised item. The amendment clearly provided that import of fatty acids could be made only by the State Trading Corporation under Open General Licence and therein it was stated as under :- "3. Import of items referred to in para 2 of this public notice shall not be allowed under any import licence already issued or under paras 31,34,37,38,138,148 and 203 of the Import and Export Policy, 1983-84 or under any other provision of the Import and Export Policy 1983-84, except against shipments from the country of origin already effected before the date of this public notice. This restriction will not, however, apply to the imports by STC of India Ltd." (Emphasis supplied) Thus, the amended Policy effective from -11-11-1983 made it clear that import of fatty acids was not allowed thereafter even under any import licence already issued "except against shipments from the country of origin already effected before the date of this public notice." In other words, the only exception made for import of the canalised items under import licences already issued was in respect of the shipments already effected from the country of origin before the date of said amendment, that is, of shipments of which transit had already commenced from the country of origin. The shipment in question arrived at Bombay on 9-2-1984 and it is not the appellants case that this shipment falls within the exception indicated above. This being so, the shipment of fatty acids in the present case, not being covered by the exception made in the amendment to the Policy effective from 11-11-1984 and the import being not through the State Trading Corporation, the appellant has been denied the benefit of its import being covered by the policy prior to its amendment.;