Retrospective withdrawal of benefits invalid; withdrawal applies only prospectively and accrued exporter claims survive.

Section 5 power does not permit retrospective amendment or withdrawal that divests vested or accrued rights; applying this principle the HC held the Notification purporting to withdraw the Transport and Marketing Assistance (TMA) scheme with retrospective effect inconsistent with limits on delegated legislation and the settled rules against retrospective deprivation. Consequently the court quashed the retrospective operation of the 25.03.2022 Notification, declared it to operate prospectively from issuance only, and directed that petitioners' claims and benefits accrued prior to 25.03.2022 be processed and extended.

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Issues: Whether the Central Government could withdraw the Transport and Marketing Assistance (TMA) scheme with retrospective effect by issuing Notification dated 25.03.2022 thereby denying benefits and claims already accrued to exporters under the scheme incorporated in the Foreign Trade Policy.

Analysis: The scheme was introduced by Notification dated 27.02.2019 and incorporated into the Foreign Trade Policy by Notification dated 29.03.2019 under powers exercisable by the Central Government under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992. The Court examined whether Section 5 permits retrospective amendments or withdrawal of a policy that has given rise to claims and accrued/vested rights of beneficiaries. Reliance is placed on authoritative precedents establishing that amendments under Section 5 cannot be given retrospective effect so as to divest vested or accrued rights, and that delegated legislation altering or withdrawing benefits cannot retrospectively take away rights which have already accrued. Applying these principles to the impugned Notification dated 25.03.2022, which withdrew the earlier Notification dated 09.09.2021 with retrospective effect, the Court found the retrospective foreclosure inconsistent with the limits on the exercise of power under Section 5 and the settled rules against retrospective deprivation of vested/accrued rights.

Conclusion: The impugned Notification dated 25.03.2022 insofar as it purports to withdraw the TMA scheme with retrospective effect is quashed and set aside; the Notification shall operate from the date of its issuance only, and the petitioners are entitled to have their claims processed and benefits extended for the period prior to 25.03.2022.

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