TaxTMI 
TaxTMI 
2026 (3) TMI 1
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....ukla, learned Senior Standing Counsels waives service of notice of rule in the respective petitions. It is submitted by learned advocates appearing for the respective parties that in Special Civil Application Nos. 598 of 2025, 640 of 2025, 649 of 2025 and 652 of 2025, the pleadings are over. Since short issue is involved in the present writ petitions, hence the matters are taken up for final hearing and final disposal today. 2. The petitioners, who are the beneficiaries of the Transport and Marketing Assistance Scheme (for short "TMA") for specified agricultural product scheme introduced vide Notification dated 27.02.2019 by the Ministry of Commerce and Industry(Department of Commerce), Government of India have challenged the Notification dated 25.03.2022 issued by the Ministry of Commerce discontinuing / withdrawing the Scheme retrospectively by withdrawing the Notification dated 09.09.2021. The Scheme was introduced with an aim to provide assistance for international component of freight and marketing of agricultural products which would mitigate the disadvantages of higher costs of transportation of export of specified agricultural products due to transshipments and for the p....
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....and Marketing Assistance (TMA) for specified agricultural products. The relevant clause of such scheme is as under: "2 Introduction and Objective: XXX XXX XXX (ii) The Scheme would be suitably included in the Foreign Trade Policy (2015-20)." (B) Thus, the Notification intended to include the Scheme in Foreign Trade Policy (2015-20). Accordingly, vide Notification dated 29.03.2019, the Ministry of Commerce and Industries, in exercise of powers under Section 5 of the Act, issued a Notification. The relevant part is as under: "MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) (Directorate General of Foreign Trade) NOTIFICATION New Delhi, the 29th March, 2019 No. 58/2015-2020 Subject: Transport and Marketing Assistance (TMA) for Specified Agriculture Products-regd. S.O. 1483(E). In exercise of powers conferred by Section 5 of Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992 as amended from time to time, read with Department of Commerce Notification No. 17/3/2018-EP (Agri. IV) dated 27.2.2019 the Central Government hereby add Chapter 7(A) in the Foreign Trade Policy, 2015-2020, as amended,....
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.... IV) dated 9th September 2021. The Government has now decided to foreclose the scheme to revamp, redesign and refocus it better for better outcomes As such, the notification dated 9 September 2021 stands withdrawn DIWAKAR NATH MISRA, Jt. Secy" (E) Thus, the Scheme introduced vide Notification dated 26.02.2019 was made part of the Foreign Trade Policy, 2015-2020, vide Notification dated 29.03.2019 by exercising the powers under Section 5 of the Act. We may, at this stage, refer to the provisions of Section 5 of the Act, the same is as under: "5. Foreign Trade Policy.- The Central Government may, from time to time, formulate and announce, by notification in the Official Gazette, the foreign trade policy and may also, in like manner, amend that policy: Provided that the Central Government may direct that, in respect of the Special Economic Zones, the foreign trade policy shall apply to the goods, services and technology with such exceptions, modifications and adaptations, as may be specified by it by notification in the Official Gazette." (F) The provision of Section 5 is self-explanatory. The same stipulates that th....
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....in. The MIP introduced by the Notification with effect from 11.02.2016 cannot be applied to imports effected by the appellants pursuant to irrevocable Letters of Credit prior to 11.02.2016." 8.1 We may also refer to the relevant paragraph No.135 of the judgement in the case of Kanak Exports & anr, (supra), which read as under: "135. We have already discussed these aspects in detail. To recapitulate, it is held by us that Section 5 of the Act does not empower the Government to make amendments with retrospective effect, thereby taking away the rights which have already accrued in favour of the exporters under the Scheme. No doubt, the Government has, otherwise, power to amend, modify or withdraw a particular scheme which gives benefits to a particular category of persons under the said scheme. At the same time, if some vested right has accrued in favour of the beneficiaries who achieved the target stipulated in the scheme and thereby became eligible for grant of duty credit entitlement, that cannot be snatched from such persons/exporters by making the amendment retrospectively. In the present case, we find that Section 5 of the Act does not give any specific power to the ....