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Govt. cannot change policy retrospectively

The Supreme Court has ruled that the government cannot amend its export-import policy to take away rights already accrued to exporters under a specific scheme. A special scheme related to their performance was announced in 2004 to boost exports by giving incentives on some items. Later it was amended by removing certain items. This spawned a rash of petitions in various high courts, which took different stands, especially Bombay and Gujarat high courts. All the parties appealed to the Supreme Court. In its common judgment, DGFT vs Kanak Exports, the court stated the government can decide policy. However, if the government realised that the earlier policy was "ill-considered" it was free to withdraw it but it could do so only prospectively, but not from a back date. "Duty credit entitlement cannot be snatched from exporters by making the amendment retrospectively."

 Article referred: http://www.business-standard.com/article/opinion/compulsory-pre-emptive-buying-held-illegal-115111500777_1.html

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