TMI Blog1996 (5) TMI 413X X X X Extracts X X X X X X X X Extracts X X X X ..... . When the Government are satisfied that change in the policy was necessary in the public interest, it would be entitled to revise the policy and lay down new policy. The Court, therefore, would prefer to allow free play to the Government to evolve fiscal policy in the public interest and to act upon the same. Equally, the Government is left free to determine priorities in the matters of allocations or allotments or utilisation of its finances in the public interest. It is equally entitled, therefore, to issue or withdraw or modify the export or import policy in accordance with the scheme evolved. We, therefore, hold that the petitioners have no vested or accrued right for the issuance of permits on the MEE or NQE, nor the Government is bou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; and (c) Non-quota Exporters Entitlement (for short, NQE ). The Uruguay round of negotiations of the GATT received final approval of the negotiations incorporating separate agreements to diverse sectors including the Textile and Clothing sector. The latter is known as the Agreement on Textile and Clothing (ATC). Thereunder, the Government of India committed to phase-out incentives or quota by December, 2004 and planned to introduce changes in quota also w.e.f. January 1, 2005. The goal thereby sought to be achieved is that an exporter, whether in India or abroad, would export garments to any other part of the world without any quota restrictions for providing right environment for textile and clothing exporters to be ready to achieve the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ook the policy that with a view to meet more competitive quality in the foreign markets introduced FCFS system giving 20% of the export. PPE was provided with 80% of the export. The new dynamism in the policy would make the trade more competitive and it will be in the best interest of the country and to boost in export potentiality and foreign exchange, on account thereof MEE and NQE quotas were eliminated and large allocation was issued to PPE system and rest of 20% was marked for FCFS quotas were eliminated and large allocation was issued to PPE system and rest of 20% was marked for FCFS system. It was also pointed that the Government encountered that MEE system was beset with floods of false declarations of the productive capacity by uns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appropriate case be bound by the doctrine of promissory estoppel evolved in Union of India Vs. Indo-Afghan Agencies [(1968) 2 SCR 366]. But the question revolves upon the validity of the withdrawal of the previous policy and introduction of the new policy. The doctrine of legitimate expectations again requires to be angulated thus: whether it was revised by a policy in the public interest or the decision is based upon any abuse of the power? The power to lay policy by executive decision or by legislation includes power to withdraw the same unless in the former case, it is by malafide exercise of power or the decision or action taken is in abuse of power. The doctrine of legitimate expectation plays no role when the appropriate authority i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refusal was vitiated by the above factors. It would, therefore, be clear that grant of licence depends upon the policy prevailing as on the date of the grant of the licence. The Court, therefore, would not bind the Government with a policy which was existing on the date of application as per previous policy. A prior decision would not bind the Government for all times to come. When the Government are satisfied that change in the policy was necessary in the public interest, it would be entitled to revise the policy and lay down new policy. The Court, therefore, would prefer to allow free play to the Government to evolve fiscal policy in the public interest and to act upon the same. Equally, the Government is left free to determine priorit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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