Basheer @ N.P. Basheer vs State Of Kerala on 9 February, 2004
8. It is pertinent to take note of another development, namely, the exemption of the homologation condition for cars vide DGFT Notification No. 34/(RE-2003)/2002-2007 dated 06.02.2004 by which the conditions of Import Licence Notes (2) (II) (c) of the Public Notice No. 4(RE-2001)/97-02 dated 31.03.2001 were made inapplicable for import of new vehicles having an FOB value of US $ 40,000 (US Dollars Forty Thousand only) or more by (a) individuals, (b) companies and firms importing under the EPCG Scheme. This notification indicates the paradigm shift of the policy makers in permitting the cars of high valued without insisting for homologation. This later relaxation in the Policy is finding a reference in the Order-in-Original at Para 7 but the Ld. Commissioner brushed it aside with observation that at the relevant time of import viz. April 2002, the condition of the exemption of vehicles valued at above US $ 4C,000 was not available. The treatment to be meted out to past cases where at a later stage the rigor of the policy is relaxed is covered by the doctrine of the rule of beneficial construction. It would suffice if I paraphrase from the order of the Hon'ble Supreme Court handed out in the matter of Basheer @ N.P. Basheer v. State of Kerala 2004 (060) RLT 843 (SC) where reference was made to two sentences from the order T. Barai v. Henry Ah Hoe and Anr. was cited as: "The rule of beneficial construction requires that even ex-post fact law of such a type should be applied to mitigate the rigor of the law. The principle is based both on sound reason and common sense."