The power granted to the licensing authorities to grant licences only upto the maximum specified in the Export Promotion Scheme was not an unreasonable restriction.

Judgment

SHAH, J. : Controls on exports & imports imposed as an emergency measure during the last war in respect of certain commodities were kept alive after the lapse of the Defence of India Rules by the Emergency Provisions (Continuance) Ordinance, 1946 which was later replaced by the Imports and Exports (Control) Act, 1947. By S.3 of the Act, the Central Government was authorised by order republished in the Official Gazette, to provide for prohibiting restricting or otherwise controlling, in all cases or in specified classes of cases, and subject to such exceptions if any, as may be made by or under the order, inter alia the import, export, carriage................. of goods of any specified description. By cl. (2) it was provided that all goods to which an order under sub-sec (1) applied Shall deemed to be goods of which the import or export has been prohibited or restricted under S. 19 of the Sea Customs Act. Exercising authority under S. 3 of the Imports and Exports (Control) Act,1947 the Central Government issued notifications from time to time prohibiting, restricting or otherwise controlling the export and import of diverse commodities. By a consolidated order dated December 7,1955, known as the Imports (Control) Order, 1955, restrictions on the import of certain goods were imposed by cl. (3) of the said order. By sub-cl. (1) of cl. (3), it was provided that save as otherwise provided in the order, on person shall import any goods of the description specified in, schedule l, except under, and in accordance with, a licence or a customs clearance permit granted by the Central Government, or by an officer specified in Schedule II. For implementing the scheme of controlling imports, diverse provisions were made ill cls. (3A) to (11) of the Imports (Control) Order.

2. The Government of India makes known its import policy every six months by issuing in the Government Gazette the procedure and the conditions for eligibility of licences and for the grant of import licenses. This policy is published for the use of the public in a hand-book called the "Import Trade Control Policy." The policy is obviously framed having regard to requirements for home consumption of commodities to be imported, the foreign currency situation and the economy of the country as a whole.

3. By para 51 of the Import Trade Control Policy for the licensing period October, 1958, to March, 1959, a scheme of Export Promotion" permitting imports depending upon the value of specified varieties of goods exported by the importer was devised. It was recited in that paragraph that in certain items the inter relation between imports and exports was direct and intimate and the ability to export some manufactured goods depended largely on the facility with which the exporter or the manufacturer could procure the basic raw materials required in the manufacture. With a view to promoting the export of such goods, a scheme was therefore devised for the grant of special import licences to replace the imported raw material component of the product exported or to provide an incentive for larger exports.

4. Art silk yarn and art silk fabrics were covered by the Export Promotion Scheme. In appendix 42 cl. (2) of the Import Trade Control Policy for October, 1958, to March, 1959, it was stated :

"With a view to stimulate exports of Indian artsilk fabrics, Sarees, garments, hosiery and other art Silk, manufactures, it has been decided to grant import licences at the ports under the Export Promotion Scheme for the import of permissible varieties of artsilk yarn to actual exporters upto the following percentage of the rupee equivalent of foreign exchange earned on the basis of the f.o.b. value of the artsilk goods exported, or the value assessed by customs., whichever is less.

i) 66 2/3 per cent in the case of Indian artsilk sarees.

(ii) 100 per cent in the case of other Indian artsilk fabrics including Indian artsilk hosiery goods.

5. The petitioners, M/s. Ramchand Jagdish Chand are a