Retrospective withdrawal of drawback benefits is impermissible without clear statutory authority

A delegate exercising subordinate legislative power cannot retrospectively take away an accrued drawback entitlement unless the parent statute clearly authorises such deprivation. Where a public notice initially fixed drawback for specified goods and a later notice removed those goods from entitlement with effect from an earlier date, the retrospective withdrawal was impermissible. As a result, recovery notices founded on that retrospective withdrawal would be without jurisdiction.

---

---

Issues: Whether the Central Government could withdraw drawback benefits retrospectively and thereby issue show cause notices for recovery of drawback already paid.

Analysis: The drawback scheme was framed under the statutory powers under the customs and excise enactments, and the public notice initially fixed the rate of drawback for the relevant goods. The later public notice removed the goods from entitlement and purported to operate retrospectively from an earlier date. A delegate exercising subordinate legislative power cannot, unless authorised, take away an accrued benefit with retrospective effect. On that principle, the retrospective withdrawal of drawback entitlement was impermissible.

Conclusion: The retrospective withdrawal was invalid and the show cause notices founded on it were without jurisdiction.

Ratio Decidendi: A delegate exercising subordinate legislative power cannot retrospectively withdraw an accrued statutory benefit unless the parent statute clearly authorises such retroactive deprivation.

---