Director General of Foreign Trade and Ors. v. Kanak Exports and Ors. - (Supreme Court) (27 Oct 2015)
Withdraw export benefits only prospectively in case of accrued vested rights
MANU/SC/1258/2015
Civil
The Supreme Court has ruled that amendments to the government’s Target Plus Scheme, to increase exports of certain goods, cannot be applied retrospectively. The Scheme was aimed at encouraging certain “thrust sectors”, like textile, electronic hardware and automotive component, entitling exporters to duty credits. Also included was the gems and jewellery industry, which was subsequently removed from the list for misuse of benefit; and the government purported to recover benefit granted to such exporters retrospectively. The Court noted that exporters of gems and jewellery had a vested right to avail duty credit, and reducing credit that could be accumulated subsequent to its accumulation effectively operated the amendment retrospectively.
Relevant : Amendments in EXIM Policy 2002-2007 MANU/DGFT/0018/2004
State of Madhya Pradesh and Ors. v. Nandlal Jaiswal and Ors. MANU/SC/0034/1986
BALCO Employees Union (Regd.) v. Union of India and Ors. MANU/SC/0779/2001
Tags : TARGET PLUS DUTY CREDIT AMENDMENT RETROSPECTIVE
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