Retrospective export prohibition barred for consignments already cleared, with policy protection preserving exporters' shipment rights.

A post-clearance export prohibition could not be applied retrospectively to consignments already handed over to Customs and cleared for export. The Court treated the later notification as ineffective against shipments cleared before its operative date, particularly where earlier judicial findings had already questioned its validity. It also held that paragraph 9.12 of the Handbook of Procedures protected exporters from policy changes operating to their disadvantage, and that this exception covered consignments submitted to Customs before the relevant public notice. The consignments were therefore entitled to be exported, and the authorities were required to permit shipment.

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Issues: (i) Whether the notification dated 4/7/2006 could validly be given retrospective effect from 22/6/2006 so as to govern consignments already cleared for export by the Customs authorities; (ii) Whether paragraph 9.12 of the Handbook of Procedures protected consignments already handed over to Customs for examination and subsequent export from the later export prohibition.

Issue (i): Whether the notification dated 4/7/2006 could validly be given retrospective effect from 22/6/2006 so as to govern consignments already cleared for export by the Customs authorities.

Analysis: The notification imposing the export prohibition was issued after the goods had already been handed over to Customs and, in several cases, after the let export orders had been made. The Court treated the later attempt to make the prohibition operative from an earlier date as ineffective against consignments already cleared prior to the notification, particularly where a competent court had already held the notification to be ultra vires.

Conclusion: The retrospective application of the impugned notification was held inapplicable to the petitioner's consignments and the challenge succeeded in favour of the petitioner.

Issue (ii): Whether paragraph 9.12 of the Handbook of Procedures protected consignments already handed over to Customs for examination and subsequent export from the later export prohibition.

Analysis: Paragraph 9.12 was read as creating a general exception where policy modifications operate to the disadvantage of exporters. The Court held that the word "disadvantage" was broad enough to cover a post-clearance export ban that prevented shipment of consignments already handed over to Customs, and even on a narrower reading the petitioner would lose the export-linked benefits under the policy if export were prevented. Since the consignments had already been handed over to Customs before the relevant public notice date, the exception applied.

Conclusion: The petitioner's consignments fell within paragraph 9.12 and were entitled to be exported.

Final Conclusion: The export restriction could not be applied to consignments already cleared by Customs before the relevant public notice, and the authorities were directed to permit export of those consignments.

Ratio Decidendi: A policy modification or export prohibition cannot be applied retrospectively to consignments already handed over to Customs for examination and cleared for export where the governing procedure excludes modifications operating to the exporter's disadvantage.

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