Tranquil Rubber Sales Ltd. Vs. Union of India (Uoi) and anr. - Court Judgment

Excerpt:
imports and exports control - letter of credit--rate of exchange--petitioner obtaining licence for import of polyether polyon--seeking to open letter of credit on basis of approximate value stated in licence--approximate value in licence could not be taken as value fixed for opening letter of credit--petitioner would have to pay only at exchange rates stipulated by rbi in its guidelines--constitution of india, article 226.;the petitioner obtained a special licence under the import and export policy, 1990-93 for import of 3.866 metric tonnes of polyether polyon. the approximate value of the goods was stated to be rs. 1,71,248. when the petitioner applied to its bank for opening a letter of credit, it was returned on 5.5.1992 stating that the letter of credit could be established only at the official exchange rate as on that date. there was a communication dated 5.5.1992 from the joint chief controller of imports and exports to the petitioner to the effect that the licence was essentially a permission to import and would not entitle the petitioner to make imports at any particular exchange rate other than the rate stipulated by the rbi in its guidelines. the petitioner challenged that communication in a writ petition: - - there is a communication dated 5.5.1992 from the joint chief controller of imports and exports to the petitioner in which it is clearly stated that the licence issued by the department was essentially a permission to import and it did not entitle the petitioner to make imports at any particular exchange rate other than what was stipulated by the reserve bank of india in its guidelines.ordersrinivasan, j.1. the petitioner obtained a special licence under the import trade control policy. the description of goods is stated to be 3.866 metric tonnes of polyether polyon. it is a licence issued as per decision taken in the 9th rslo meeting held on 23.12.1991. the approximate value is stated to be as rs. 1,71,248/-.2. when the petitioner applied to the second respondent for opening a letter of credit, it was returned on 5.5.1992 stating that as per the guidelines of the reserve bank of india, the bank was in a position to establish a letter of credit at the official exchange rate as on the date. there is a communication dated 5.5.1992 from the joint chief controller of imports and exports to the petitioner in which it is clearly stated that the licence issued by the department was essentially a permission to import and it did not entitle the petitioner to make imports at any particular exchange rate other than what was stipulated by the reserve bank of india in its guidelines. hence, it is stated that the authorised foreign exchange dealers would release foreign exchange at rates fixed by them on the basis of the reserve bank of india guidelines.3. aggrieved by the same, the petitioner has filed this writ petition for issue of a certiorarified mandamus for quashing the communication dated 5.5.1992 and a consequential direction to the second respondent to open a letter of credit for the quantity of goods covered by the licence issued to it.4. there is no substance in the contention put forward by the petitioner. the licence itself mentions that the value is only the approximate value. that cannot be taken as the value fixed for the purpose of opening a letter of credit. nor can it be taken as a permission to the petitioner to import the goods mentioned in the licence at the value set out in the licence. it is the case of the petitioner that it will have to pay an additional sum of rs. 35,000/- if it is made to pay the rate of exchange fixed by the reserve bank of india. there is no escape therefrom. the petitioner has to obey the law and it has to pay only at the exchange rate as stipulated by the reserve bank of india in its guidelines. hence,there is no merit in the writ petition. the writ petition is dismissed.

Judgment:
ORDER

Srinivasan, J.

1. The petitioner obtained a special licence under the Import Trade Control Policy. The description of goods is stated to be 3.866 metric tonnes of polyether polyon. It is a licence issued as per decision taken in the 9th RSLO meeting held on 23.12.1991. The approximate value is stated to be as Rs. 1,71,248/-.

2. When the petitioner applied to the second respondent for opening a letter of credit, it was returned on 5.5.1992 stating that as per the guidelines of the Reserve Bank of India, the bank was in a position to establish a letter of credit at the official exchange rate as on the date. There is a communication dated 5.5.1992 from the Joint Chief Controller of Imports and Exports to the petitioner in which it is clearly stated that the licence issued by the department was essentially a permission to import and it did not entitle the petitioner to make imports at any particular exchange rate other than what was stipulated by the Reserve Bank of India in its guidelines. Hence, it is stated that the authorised foreign exchange dealers would release foreign exchange at rates fixed by them on the basis of the Reserve Bank of India guidelines.

3. Aggrieved by the same, the petitioner has filed this writ petition for issue of a certiorarified mandamus for quashing the communication dated 5.5.1992 and a consequential direction to the second respondent to open a letter of credit for the quantity of goods covered by the licence issued to it.

4. There is no substance in the contention put forward by the petitioner. The licence itself mentions that the value is only the approximate value. That cannot be taken as the value fixed for the purpose of opening a letter of credit. Nor can it be taken as a permission to the petitioner to import the goods mentioned in the licence at the value set out in the licence. It is the case of the petitioner that it will have to pay an additional sum of Rs. 35,000/- if it is made to pay the rate of exchange fixed by the Reserve Bank of India. There is no escape therefrom. The petitioner has to obey the law and it has to pay only at the exchange rate as stipulated by the Reserve Bank of India in its guidelines. Hence,there is no merit in the writ petition. The writ petition is dismissed.