AJIT K. SENGUPTA, J. ( 1 ) IN this application under Article 226 of the Constitution the petitioner has asked for recalling or cancellation of the orders or directions passed by the 2nd and 3rd respondents, being the Joint Chief Controller of Imports and Exports and Chief Controller of Imports and Exports respectively. ( 2 ) THE case of the petitioner is that he carries on business of manufacturer and exporter of, inter alia, cotton and silk Scarves and Stoles. In addition thereto the petitioner also exports all kinds of Silk/cotton/hosiery Textiles. The aforesaid business is carried on by the petitioner under the trade name "messrs Impex India" as Sole Proprietor thereof. The petitioner is duly registered as a small scale industrial unit with the Directorate of Cottage and Small Scale Industries Government of West Bengal, as well as with the Department of Textiles of the Ministry of Commerce of the Government of India. ( 3 ) IN order to boost exports, the Government of India has been announcing from time to time several incentive schemes. One such scheme as laid down in the Import Policy of the Government of India for the period 1985 is the scheme under which a manufacturer-exporter like the petitioner is granted, inter alia, Advance licences for import of raw materials required for the purpose of manufacturing finished products which are to be exported, without payment of any Customs Duties thereon subject to the said manufacturer-exporter satisfying the conditions therefor laid down in the said scheme. The said scheme is known as "the Duty Exemption Scheme" and is contained the Chapter XVI, Appendix 19 of the Import Policy, 1985-88 (hereinafter referred to as "the said Import Policy" ). The same Scheme was also prevalent in the earlier Import Policies of the Government of India including the Import Policy for the period 1983-84. Therein also Appendix 19 of the said Import Policy, 1983-84 provided for such a Scheme. ( 4 ) EVERY Advance Licence issued under the aforesaid Scheme of the 1983-84 Import Policy as well as the Import Policy of 1985-88 was subject to an export obligation imposed thereon to be fulfilled within the period prescribed. Therein also Appendix 19 of the said Import Policy, 1983-84 provided for such a Scheme. ( 4 ) EVERY Advance Licence issued under the aforesaid Scheme of the 1983-84 Import Policy as well as the Import Policy of 1985-88 was subject to an export obligation imposed thereon to be fulfilled within the period prescribed. ( 5 ) ON or about March 13,1983 the petitioner applied to the second respondent in the prescribed form and in the prescribed manner for grant of an Advance Import Licence in order to Import Natural Raw Mulberry Silk of total C. I. F. value of Rs. 4,22,037/- duty free, for the purpose of manufacture of Silk Scarves/stoles therefrom and export the same. From the application submitted by the petitioner to the said second respondent it would be seen that the total F. O. B. value of the exported goods would be to the tune of Rs. 6,34,843/- after deducting commission of Rs. 22,350/- pursuant to the said application an Advance Import Licence bearing No. K/m/2967067/c-XX787-C/83/c/83/k. 7 (I), dated 10th May 1983 was issued to the petitioner whereunder the petitioner was entitled to import Mulberry Raw Silk of any grade other than Dupion Yarn of value and weight stated therein. ( 6 ) ON 6th June 1983 the petitioner was furnished with a Duty Entitlement Exemption Certificate Book (DEEC Book) bearing No. 00612/cal. in accordance with the provisions of the Import Policy, 1983-84 so that the petitioner could import-duty-free consignments of Mulberry Raw Silk under the aforesaid Import Licence dated 10th May 1983. The necessary endorsements giving details of the resultant exports made from the raw-materials imported were also to be made in the said DEEC Book by the appropriate Customs Authorities. ( 7 ) IN accordance with the requirements of the said Duty Exemption Scheme contained in the Import Policy, 1983-84 and as required by the respondents the petitioner on or about 13th February 1984 submitted before the second respondent a legal undertaking. The said legal undertaking was subsequently converted under directions of the respondents first to a Bond and thereafter to a Bank Guarantee. ( 8 ) IN the meanwhile on or about May 22,1984 the petitioner imported a consignment of Mulberry Raw Silk in terms of the aforesaid Import Licence dated 10th May 1983 C. I. F. Calcutta and after compliance with all necessary formalities as required by the Customs Authorities clearance thereof. ( 8 ) IN the meanwhile on or about May 22,1984 the petitioner imported a consignment of Mulberry Raw Silk in terms of the aforesaid Import Licence dated 10th May 1983 C. I. F. Calcutta and after compliance with all necessary formalities as required by the Customs Authorities clearance thereof. ( 9 ) THEREAFTER the petitioner started production with the said materials and export of finished products in terms of the undertaking given by him. In the meanwhile it came to the notice of the petitioner that due to certain inadvertent mistakes on the part of both the petitioner and the respondents there were errors in both the C. I. F. value of the raw materials imported and consequently the F. O. B. value of the finished products to be exported. This was because of error in the quantity of the raw materials to be imported. Consequently there was error in the quantity of the export materials to be exported. ( 10 ) BY a letter dated 7th August 1985 the petitioner drew the attention of the third respondent to the aforesaid error and requested issuance of necessary directions to the second respondent for effecting necessary correctness in the D. E. E. C. Book as well as in all the other relevant documents. ( 11 ) BY a letter dated 6th November 1985 the petitioner approached the third respondent and requested for effecting necessary reduction of export obligation and making necessary endorsement in this regard in the D. E. E. C. Book and the Licence which were enclosed with the said letter. ( 12 ) IN the meanwhile the export obligation period having expired the petitioner made applications to the third respondent who duly granted such extension. The last of the such extensions was granted on 10th December 1986. ( 13 ) BY the letter dated 10th December 1986 the third respondent informed the petitioner that the export obligations period was extended upto 30th August 1986 for the purposes of regularisation and the petitioner should immediately pay Customs Duty with interest on the unaccounted for materials for import and also surrender Valid Replenishment Licences issued for Non-O. G. L. items to cover unfulfilled portions of the export obligations. ( 14 ) FROM the endorsement made in the DEEC Book by the Customs Authorities it would appear that the petitioner had already completed by 30th August; 1986 made in this more or less 95% of its export obligations. The petitioner was required' to surrender Valid Replenishment Licence issued for Non-O. G. L. items of the said letter dated 10th December 1986 to cover only the balance 5% more or less of its export obligation which remained unfulfilled, in addition to paying Customs Duty with interest on the unaccounted for amount of raw materials. ( 15 ) HOWEVER, unless the DEEC Book and the Advance Import Licence were corrected by reducing the export obligation thereunder in the manner aforesaid, the petitioner was not in a position to compute the correct Customs Duty payable as well as the value of the Rep. Licences to be submitted in terms of the aforesaid letter dated 10th December 1986 of the third respondent. ( 16 ) THE second respondent, however, failed and neglected to make necessary correction in the DEEC Book and Import Licence and reduce the export obligation amount stated therein. ( 17 ) BY a letter dated 18th March 1987 the petitioner was informed by the first respondent on behalf of the second respondent that apparently the office of the second respondent did not receive any instruction from the third respondent regarding the amendment of F. O. B. value of items in the DEEC Book and the Advance Licence and as such could not make the necessary amendments. The petitioner was further informed that the DEEC Book was being returned to him and the petitioner was to pay Customs Duty along with interest on the unaccounted for exempt materials as well as surrender the valid Rep. Licence equivalent to C. I. F. of the unfulfilled Export obligation. ( 18 ) IN the premises, by a letter dated March 27,1987 the petitioner requested the third respondent to issue necessary directions immediately to the second respondent as without the same it was difficult for the petitioner to obtain any 'no Objection Certificate' from the Customs Authorities. ( 19 ) THE petitioner received a communication dated 18th May 1987 from the first respondent calling upon the petitioner to submit the DEEC Book for further consideration. In response thereto the petitioner submitted the DEEC Book for necessary amendment in DEEC Book and the licence. ( 19 ) THE petitioner received a communication dated 18th May 1987 from the first respondent calling upon the petitioner to submit the DEEC Book for further consideration. In response thereto the petitioner submitted the DEEC Book for necessary amendment in DEEC Book and the licence. ( 20 ) ON or about June 8, 1987 the petitioner received the DEEC Book duly amended wherein the C. I. F. value of Licence Quantity of Import and Export obligation was corrected but the F. O. B. value of Export obligation was not properly corrected vide letter No. 11/500/87, dated 1-6-1986 of the petitioner. The petitioner thereafter duly approached the Customs Authorities and the Customs Duties along with interest on the exempt quantity of raw materials which was unaccounted for in terms of the aforesaid directions of the respondents, as would be evident from the receipt dated 1st September 1987 issued by the Customs Department in this regard. ( 21 ) THEREAFTER the Customs Authorities duly endorsed the DEEC Book with 'no Objection Certificate' part 'm' thereof. By a letter dated 5th October 1987 the petitioner submitted the said DEEC Book to the third respondent and also surrendered valid Replenishment Licence of total value of Rs. 21,805/- covering Non-OGL items in order to cover the unfulfilled portions of export obligation, in terms of the letter dated 10th December 1986 of the third respondent. The petitioner also requested the second respondent to redeem the Bond executed by it as well as discharge the Bank Guarantee and to return the Import Licence No. K10479942/c, dated 4th August 1982 reducing its value by Rs. 13,602/- which was the excess amount after fulfilment of the export obligation. ( 22 ) AS desired, the petitioner in his letter dated 6th November 1987 furnished all necessary details/documents as sought for by the second respondent and again requested him to discharge the Indemnity Bond at the earliest. ( 23 ) HOWEVER, on or about 24th December 1987 the petitioner received the order dated 17th December 1987 from the first respondent on behalf of the second respondent alleging that the petitioner was required to surrender the valid Replenishment Licence of Group K-7 (i) for Rs. 2,42,402/- instead of Rs. 21,805/- submitted by the petitioner according to the Public Notice No. 182/85-88, dated 1st June, 1987 and called upon the petitioner to surrender valid Rep. 2,42,402/- instead of Rs. 21,805/- submitted by the petitioner according to the Public Notice No. 182/85-88, dated 1st June, 1987 and called upon the petitioner to surrender valid Rep. Licence of same serial for the balance value of Rs. 2,28,402/- for further consideration of the petitioner's case. ( 24 ) BY a letter dated 2nd January 1988 the petitioner drew the attention of the third respondent to the aforesaid demand of the second respondent as contained in the aforesaid communication dated 17th December 1987 and to the entire facts and circumstances of the case and requested him to issue necessary instructions to the second respondent to discharge the Indemnity Bond along with the Import Replenishment licences for Rs. 13,6027- in serial K-7 (i) as the petitioner had already fulfilled its requirement as per the instructions of the third respondent as contained in its letter dated 10th December 1986. ( 25 ) HOWEVER, the petitioner received another communication dated 10th February 1988 on behalf of the third respondent whereby the petitioner was advised to first surrender the Import Replenishment licences in Group K-7 (i) equivalent to shortfall and thereafter to approach the second respondent directly in the matter. The petitioner was also informed that the Replenishment licence for Non-O. G. L. items other than Group L-7 (i) would not be accepted. ( 26 ) THE petitioner has challenged the aforesaid two orders or directions of the respondents as contained in the said communications dated 17th December, 1987 and 10th February 1988. ( 27 ) THE contention is that the said orders are arbitrary and illegal and without and/or excess of jurisdiction. It is the contention that the respondents have no jurisdiction to demand from the petitioner Import Replenishment Licence in the manner sought for by the said orders. ( 28 ) THIS contention has to be decided in light of the facts and circumstances as narrated hereinbefore and the relevant Import Policy. ( 29 ) APPENDIX 19 of both the Import Policies of 1983-84 and 1985-88 deals with issuance of Advance Licence under the Duty Exemption Scheme and the consequent obligations in terms thereof. ( 28 ) THIS contention has to be decided in light of the facts and circumstances as narrated hereinbefore and the relevant Import Policy. ( 29 ) APPENDIX 19 of both the Import Policies of 1983-84 and 1985-88 deals with issuance of Advance Licence under the Duty Exemption Scheme and the consequent obligations in terms thereof. ( 30 ) PARA 20 of Appendix 19 of Import Policy 1983-84 reads as follows: "where for one reason or the other, exports to the extent as specified in the Duty Exemption Entitlement Certificate do not take place, after grant of extensions in the period of export obligation, the manufacturer shall pay to the Customs Authority the Duty on the proportionate quantity of exempt material corresponding to the products not exported. He shall pay the customs duty on any excess material that has been left after utilisation in the resultant products and completion of the corresponding exports. He shall also pay interest at 18% on the total amount thus payable, from the date of clearance of imported goods to the date on which the amount due from his is actually paid. These provisions will be without prejudice to any other action that may be without prejudice to any other action that may be taken under the import control law for failure to discharge the export obligation. " ( 31 ) PARA 29 of the Import Policy 1985-88 prior to its amendment by the Public Notice No. 182/85-88, dated 1st June 1987 reads as follows :-" (1) Where any bond/legal agreement has not been executed against a licence issued under this Scheme within the validity of the licence, licensing authority concerned will initiate action for called back the licence for cancellation. (2) In other cases, a cautionary letter about the expiry of the export obligation period will be issued to the exporter one month before the expiry of the export obligation period. Licensing authorities will also initiate follow up actions within 30 days from the date of expiry of the export obligation period. If the exports have not been completed in fulfilment of the export obligation penal actions as provided in the succeeding paras will be initiated. (3) If a licence holder fails to discharge the prescribed export obligation within the permitted time, either in full or in part, the bond legal agreement executed by him will be enforced. If the exports have not been completed in fulfilment of the export obligation penal actions as provided in the succeeding paras will be initiated. (3) If a licence holder fails to discharge the prescribed export obligation within the permitted time, either in full or in part, the bond legal agreement executed by him will be enforced. He shall also be treated to be in default, thereby disentitling him to secure any licences/release orders either under this Scheme or under any other provisions of this Policy. In such cases, the registered exporter shall: (i) pay forthwith to the Customs Authority concerned duty on the proportionate quantity of exempt materials imported corresponding to the products not exported and on any excess materials that is left over after utilisation in the manufacture of the resultant products and completion of the corresponding exports; and (ii) pay interest at 18% per annum of the total amount of Customs Duty and other duties payable from the date of clearance of the imported (exempt materials) to the date on which the amount due from him is actually paid. The defaulting licensee will take the above actions within a month from the date of any order issued by the licensing authority concerned. (4) If the default licensee fails to act according to the provisions in sub-para (3) above, the licensing authority shall recover the amounts and value of such REP licences due from export entitlements due to the defaulting exporter. The Customs authorities shall also take suitable action for recovery of Customs or other duties and interest thereon under Section 142 of the Customs Act, 1962. These actions shall be without prejudice to any action that may be taken against the defaulter exporter under the Import and Export (Control) Act, 1947 and the order issued thereunder. (5) Any follow-Up or penal action initiated by the licensing authorities shall not be discontinued unless these are stayed or set aside the appellate authorities concerned. "the relevant provisions in this regard in the Handbook of Import and Export Procedure for the period 1983-84 and 1985-88 are contained in paras 80 to 82 and para 350 (prior to 1st June 1987) respectively. ( 32 ) PARA 82 of the Handbook of Import and Export Procedures, 1983-84 read as follows:" (1) The details of the Duty Exemption Scheme are given in Appendix 19 of the Import-Export Policy 1983-84. ( 32 ) PARA 82 of the Handbook of Import and Export Procedures, 1983-84 read as follows:" (1) The details of the Duty Exemption Scheme are given in Appendix 19 of the Import-Export Policy 1983-84. (2) Applications for Advance Licences under the scheme should be made in the prescribed form as given in the Import-Export Policy 1983-84, to the regional licensing authority concerned. Simultaneously, the applicant should send copies of the application to the Chief Controller of Imports and Exports (E. P. II Section), DGTD, New Delhi (Import and Export Policy Cell) and Deputy Secretary (Drawback), Department of Revenue and Banking, Jeevandeep Building, Sansad Marg (Parliament Street), New Delhi. The advance licence will be issued by the licensing authority concerned on the basis of the decisions taken by the Advance Licences Committee in the office of CCI and E, New Delhi. (3) An advance licence will be subject to a suitable export obligation. Where the application for the licence is made against an export order the F. O. B. of such order will form the basis for determining the export obligation. Where the applicant does not have an export order, the export obligation will be fixed on the basis of approximate unit F. O. B. price of the latest export of the same product by the same applicant. (4) The licensing authority issuing the advance licence will also issue the connected duty Exemption Entitlement Certificate. The certificate will be issued in two separate parts one for imports and the other for exports. (5) In cases where the relevant input/output norms relating to an export product have been approved by Advance Licences Committee and the same exporter desires to have the benefit of duty exemption on the basis of the same norms for export production for the same product, he may apply for another advance licence (based on an export order in hand or otherwise) and also for the grant of the connected Duty Exemption Entitlement Certificate to the regional licensing authority concerned, with a copy of the application and the supporting documents to the Chief Controller of Imports and Exports (EP-II Section), New Delhi, Director (Drawback), Ministry of Finance (Department of Revenue), New Delhi. In such cases, the licensing authority will issue the advance licence and the Duty Exemption Entitlement Certificate and inform the Advance Licence Committee ex post facto. In such cases, the licensing authority will issue the advance licence and the Duty Exemption Entitlement Certificate and inform the Advance Licence Committee ex post facto. In such cases also, the Chief Controller of Imports and Exports may, where considered necessary direct any regional licensing authority to take prior approval of the Advance Licences Committee, for the grant of the Advance licence. (6) Before clearance of the first consignment of the goods against the advance licences or before obtaining supplies of the goods against a Release Order, as the case may be, the party shall be required to execute - an export bond (vide Appendix 38) with the licensing authority concerned. This will be a Combined export bond both for the purpose of customs duty exemption and for ITC purpose. The provisions made in sub-paras (19), (11) and (12) of Para 81 above will apply in such cases. (7) Where an exporter has obtained an advance licence, the exports made by him from the date of receipt of the advance licence application by the licensing authority, may be accepted towards the discharge of the table and have been duly endorsed by the customs authority in the relevant Duty Exemption Entitlement Certificate. This facility cannot be claimed by an exporter as a matter of right. (8) Where the export obligation against and advance licence has been fulfilled in part before the importation of the first consignment against the advance licence, the licensing authority may accept the combined export bond referred to in sub-para (6) above for a correspondingly reduced value, so that it represents only the unfulfilled part of the export obligation. The reduced obligation for which the export bond may be taken in such cases will be decided by the licensing authority in consultation with the customs authorities concerned. (9) Where the applicant is entitled to duty exemption for a canalised item, it will be open to him to either import that item directly or get an Advance Release Order for obtaining supplies of imported material from the bonded stocks of the canalising agency concerned. (10) The licensing authority may, on request, enhance the value of the advance licence where such enhancement becomes necessary on account of higher freight or upward variation in the exchange rate, provided such enhancement in the value of the advance licence does not reduce the value added below the minimum prescribed level. (10) The licensing authority may, on request, enhance the value of the advance licence where such enhancement becomes necessary on account of higher freight or upward variation in the exchange rate, provided such enhancement in the value of the advance licence does not reduce the value added below the minimum prescribed level. (11) Where the value of advance licence falls short resulting from an adverse foreign exchange fluctuation, the customs authority may not insist on the licence value being increased on this account. (12) Requests for extension in the period for the discharging of export obligation upto six months may be considered by the licensing authority concerned. Further extension will be considered by the Advance Licence Committee. (Detailed policy is contained in Appendix 19 of Import Policy ). (13) If an exporter fails to discharge the export obligation during the period initially stipulated for this purpose and the extensions granted, he shall also be liable to pay the amount of customs duty that was exempted on the import together with the interest @ 18% on the amount of customs duty payable, from the date of clearance of imported goods to the date on which the amount of customs duty is refunded by him. This payment of interest will be without prejudice to any other action that may be taken in this behalf. "32. Para 350 of the Handbook of Import and Export Procedures prior to its amendment by the Public Notice No. 182/85-88, dated 1st June, 87 reads as follows :-"the Bond and the legal agreement forms have been given in Appendix XVI-C and D to this Book. The format of DEEC which is a part of Customs Notification dated 5-4-1982 is given in Appendix XVI-E to this Book. Forms of certificates for Chartered Engineer, Project Authorities and DGTD are given in Appendix XVI-F and G respectively to this Book. " ( 33 ) BY the Public Notices No. 182/85-88, dated 1st June 1987 the third respondent amended para 29 of the 1985-88 Import Policy and added a new para 350a in the Handbook of Import and Export Procedures of 1985-88. ( 34 ) THERE is no dispute that the Import Licence in question was issued to the petitioner during the Policy period 1983-84. This licence was covered by the Import Policy 1983-84. ( 34 ) THERE is no dispute that the Import Licence in question was issued to the petitioner during the Policy period 1983-84. This licence was covered by the Import Policy 1983-84. Thus the extent of export obligation of the petitioner as well as the consequence for non-fulfilment thereof should be considered in accordance with the provisions in this regard contained in the 1983-84 Import Policy and/or the Handbook of Import and Export Procedures. The provisions of 1985-88 Import Policy or the Handbook of Import and Export Procedure of 1985-88 can have no application whatsoever to the instant case. The rights and obligations of parties must be regulated by the 1983-84 Import Policy which governed the import of raw materials and corresponding export of the finished products under the licence issued under the said policy. ( 35 ) IN para 20 of the 1983-84 Import Policy it is provided that the Import like the petitioner in such a case has to pay to the Customs Department the Duty on proportionate quantity of exempt materials corresponding to the products not exported along with interest at the rate of 18% on the total amount thus payable from the date of clearance of imported goods to the date on which the amount due from him is actually paid. It is further provided therein that this would be without prejudice to any other action which may be taken against the petitioner under the Import Control Law for failure to discharge export obligations. The aforesaid provisions of paras 80 to 82 of the Handbook of Import and Export Procedures for the period 1983-84 provided that in the event of non-fulfilment of export obligations within the prescribed time limit the Bond amount would be liable to forfeiture and this would be without prejudice to adjustment of excess licensing against the Licensee's future Actual User, Replenishment and other Licences or any other action that may be taken against the Licensee under the Import (Control) Order, 1955 as amended. ( 36 ) ADMITTEDLY the petitioner has duly paid the Customs Duty with 18% interest as required under para 20 of the said 1983-84 Import Policy. ( 36 ) ADMITTEDLY the petitioner has duly paid the Customs Duty with 18% interest as required under para 20 of the said 1983-84 Import Policy. ( 37 ) BY its letter dated 10th December 1986 the third respondent also in exercise of its power conferred by clause 12 of para 81 of the Handbook of Import and Export Procedures for 1983-84 demanded from the petitioner surrendering of valid Rep. Licences issued for Non-O. G. L. items to cover unfulfilled portions of export obligations. From the facts narrated hereinbefore it is evident that the petitioner has more than fulfilled such demand of the third respondent: In fact, the petitioner has surrendered excess licence than is required and it is incumbent upon the respondents to return the petitioner the said excess licence. ( 38 ) EVEN assuming the provisions of the 1985-88 Import and Export Procedures, would apply, the provisions of the said Import Policy and the Handbook as they existed on 30th August would only apply. The provision thereof amended after 30th August 1986 cannot be made applicable. Such amendment can apply prospectively and not retrospectively. Thus any amendment made to the said Import Policy and/or the Handbook after 30th August 1986 can have no application whatsoever to the case of the petitioner. Thus the Public Notice dated 1st June 1987 and the amendment effected thereby in the said Import Policy and/or the said Handbook cannot affect the instant case. ( 39 ) I have already extracted the requirements of para 29 of the said Import Policy as well as para 350 of the said Handbook as they existed on 30th August 1986 (in fact upto 31st May 1987) which deal with case like the instant one. The petitioner having satisfied the aforesaid requirements the petitioner cannot be required to surrender any further Import Replenishment Licence. As a matter of fact by the letter dated 10th December 1986 the third respondent clearly required the petitioner to comply with the requirements as contained in para 29 of the said Import Policy and/or para 350 of the said Handbook. The petitioner was directed to "pay immediately Customs Duty with interest on the unaccounted for material for import and also surrender valid REP licences issued for non OGL items to cover unfulfilled portions of the export obligations". The petitioner having complied with those directions, cannot be further penalised. The petitioner was directed to "pay immediately Customs Duty with interest on the unaccounted for material for import and also surrender valid REP licences issued for non OGL items to cover unfulfilled portions of the export obligations". The petitioner having complied with those directions, cannot be further penalised. ( 40 ) THE Public Notice dated 1st June 1987 seeks to amend the said Import Policy and the said Handbook in the manner contained therein. Public Notices are always -prospective in nature and can never have any retrospective effect. This is a well settled proposition. The import and the corresponding export to the extent of 95% have been completed by the petitioner much prior to the coming into effect of the said public notice and the amendments introduced thereby. The entire operation under the said Duty Exemption Scheme having ended on 30th August 1986, much prior to the coming into effect of the said Public Notice, the provisions contained in the said Public Notice and the amendments sought to be introduced thereby to the said Import Policy and/or the said Handbook cannot affect or reopen the transactions already concluded. ( 41 ) THERE is another aspect of the matter. The third respondent by its letter dated 10th December 1986 had called upon the petitioner to pay Customs Duty and interest on the unaccounted for materials for import and also surrender Valid Replenishment Licence issued for Non-O. G. L. items to cover the unfulfilled portions of export obligations which the petitioner duly complied with. The said respondent as well as the first respondent and/or second respondent who are subordinate to the said respondent, are estopped from contending to the contrary and/or purporting to make any contrary demands. By its letter dated 10th December, 1986 the third respondent had represented and/or promised and/or assured the petitioner that for unfulfilled 5% of its export obligation, it was required to pay Customs Duty with interest on the accounted for materials for import and surrender Valid Replenishment Licence issued for Non-O. G. L. items to cover the unfulfilled portions of export obligation. No other or further condition or requirement was mentioned therein. The petitioner had acted on the basis of the said representation and/or promise and/or assurance of the third respondent and had acted and had thus altered this position to his detriment. The respondents cannot, therefore, now be allowed to contend to the contrary. No other or further condition or requirement was mentioned therein. The petitioner had acted on the basis of the said representation and/or promise and/or assurance of the third respondent and had acted and had thus altered this position to his detriment. The respondents cannot, therefore, now be allowed to contend to the contrary. ( 42 ) THE arbitrariness and/or perversity of the purported demands of the respondents as contained in the said purported communications would be further apparent from the fact that under the Import Policy, 1983-84 whereby the petitioner is covered, the petitioner would be entitled to Replenishment Licences, for the exports effected by more or less (95%) of a total value of Rs. 1,16,656/ -. The same respondents are requiring the petitioner to surrender, for non-fulfilling more or less 5% its export obligation, Replenishment Licences worth Rs. 2,42,412/- which is an incredible and unheard of proposition. ( 43 ) IN the instant case the second respondent has been acting all through arbitrarily, causing thereby avoidable harassment and loss and prejudice to the petitioner. As would be evident from the facts stated here in above, in spite of directions of the third respondent to make necessary amendments in the Advance Licence and the DEEC Book, inter alia as regards the export obligation amount and value on one pretext or the other the second respondent delayed such amendments for a period of more or less 9 months, thereby compelling the petitioner to pay interest at the rate of 18% to the Customs Authorities for a period of more or less 9 months after December 1986 when the petitioner had clearly received directions for the third respondent calling upon it to pay Customs Duty with interest on the unaccounted materials for import. By reason and such action of the first respondent No. 1 and/or the second respondent the petitioner could make payment only on 1st September, 1987 that is about 9 months later. It is, therefore, incumbent upon the respondents to reimburse to the petitioner, the sum of Rs. 12,673/- (including interest or excess interest) paid by the petitioner to the Customs Authorities as and by way of excess interest which it has no liability whatsoever to pay but for the wrongful and illegal action of the said respondents. It is, therefore, incumbent upon the respondents to reimburse to the petitioner, the sum of Rs. 12,673/- (including interest or excess interest) paid by the petitioner to the Customs Authorities as and by way of excess interest which it has no liability whatsoever to pay but for the wrongful and illegal action of the said respondents. ( 44 ) FOR the reasons aforesaid, the said orders as contained in the communications impugned herein are erroneous and illegal and must be set aside and quashed. ( 45 ) IN the result, this application succeeds. Rule is made absolute. Let appropriate Writs be issued. There will be no order as to costs.