Retrospective policy amendments cannot extinguish accrued Target Plus duty credit once export performance is completed.

A retrospective amendment to the Foreign Trade Policy could not withdraw an exporter's accrued Target Plus duty credit entitlement for exports already completed. The court held that once the exporter had acted under the existing policy and finished the required performance, the benefit had vested and was protected against retrospective deprivation. An amendment that reduces or destroys an already earned entitlement is invalid where it impairs accrued rights relied upon under the policy framework. The impugned restriction was quashed, and the balance credit benefit was directed to be extended to the exporter.

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Issues: Whether the retrospective amendment to the Foreign Trade Policy could withdraw the petitioner's accrued Target Plus duty credit entitlement for exports already completed.

Analysis: The petitioner had acted on the existing Foreign Trade Policy and completed the relevant export performance before the amending notification. The amendment sought to reduce the entitlement with retrospective effect and thereby take away a benefit already earned under the earlier policy. A retrospective measure that impairs vested rights or destroys accrued benefits is not ordinarily permissible, particularly where the benefit arose from a policy framework on which the exporter had already relied. The policy promise and the completed performance attracted the protection of settled principles against retrospective deprivation of accrued rights.

Conclusion: The retrospective restriction on the petitioner's duty credit entitlement was invalid and the petitioner was entitled to the additional 5% credit.

Final Conclusion: The petition succeeded and the impugned restriction on the Target Plus entitlement was quashed, with a direction to extend the balance credit benefit to the petitioner.

Ratio Decidendi: A retrospective amendment cannot withdraw a benefit that has already accrued under an existing policy after the beneficiary has completed the required performance and acquired a vested right to the entitlement.

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