S.B. INTERNATIONAL LTD. ETC. versus ASSTT. DIRECTOR GENERAL OF F.T. AND ORS. ETC.

S.B. INTERNATIONAL LTD. ETC. versus ASSTT. DIRECTOR GENERAL OF F.T. AND ORS. ETC.

Applicant for advance licence has no vested right to the norms prevailing on the date of application; value addition norm in force on the date of grant of licence is applicable. Promissory estoppel does not apply in the context of the Duty Exemption Scheme which allows import only in advance of export, and is subject to administrative verification and policy change. Advance licence grant is not mechanical but contingent on compliance and satisfaction of relevant statutory and policy requirements.

Parties
Appellant: S.B. International Ltd.; Respondents: Assistant Director General of Foreign Trade and Union of India
Jurisdiction
India
Judgment Date
24 January 1996
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeals From Calcutta High Court
Outcome
Appeal of appellant dismissed; appeal of Government/respondents allowed.
Legal Topics
Export and Import Policy, Advance Licence, Duty Exemption Scheme, Value Addition Norms, Promissory Estoppel
International Trade Law Administrative Law Export and Import Policy Advance Licence Duty Exemption Scheme Value Addition Norms Promissory Estoppel

Case Brief

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Parties

S.B. International Ltd.

Appellant

Assistant Director General of Foreign Trade and Union of India

Respondents

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeals From Calcutta High Court

Legal Issues

  1. 1 Whether the appellant is entitled to advance licences based on value addition norms prevailing prior to 25.9.1992 by reason of having applied before that date.
  2. 2 Whether mere filing of application creates a vested right in norms existing at the date of application.
  3. 3 Applicability of promissory estoppel against change in policy.

Ratio Decidendi

Applicant for advance licence has no vested right to the norms prevailing on the date of application; value addition norm in force on the date of grant of licence is applicable. Promissory estoppel does not apply in the context of the Duty Exemption Scheme which allows import only in advance of export, and is subject to administrative verification and policy change. Advance licence grant is not mechanical but contingent on compliance and satisfaction of relevant statutory and policy requirements.

Court Disposition

Appeal of appellant dismissed; appeal of Government/respondents allowed.

Orders

  • Applicant not entitled to advance licences on basis of value addition norms prevailing before 25.9.1992 solely because applications were made before that date.
  • Licences governed by value addition norm in force at date of grant.