M/S MARUTI AGRO TRADERSversusUNION OF INDIA

     C/SCA/1535/2024                                   JUDGMENT DATED: 06/05/2026




             IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

               R/SPECIAL CIVIL APPLICATION NO. 1535 of 2024


FOR APPROVAL AND SIGNATURE:


HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK
================================================================

            Approved for Reporting                   Yes           No
                                                                   ✔
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                         M/S MARUTI AGRO TRADERS
                                  Versus
                           UNION OF INDIA & ANR.
================================================================
Appearance:
S A CHHABARIA(7740) for the Petitioner(s) No. 1
MR HARSHEEL D SHUKLA(6158) for the Respondent(s) No. 1,2
================================================================

 CORAM:HONOURABLE MR. JUSTICE HEMANT M.
       PRACHCHHAK

                                Date : 06/05/2026

                                   JUDGMENT


1.      RULE returnable forthwith. Learned counsel Mr. Harsheel
Shukla, waives service of notice of Rule for and on behalf of the
respondents.


2.      With the consent of the learned counsels for the parties, the
matter is taken up for final hearing and disposal.


3.      By way of present petition under Article 226 of the Constitution
of India, petitioner has prayed for the following reliefs :


        “(A) To issue a Writ of Certiorari or Writ of Mandamus or appropriate writ,
        direction or order setting aside the impugned Notification dated 25/03/2022



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        issued by the Respondent No. 1, withdrawing the Notification dated
        09/09/2021 bearing F No. 17/02/2021-EP (Agri. IV) "Revised Transport and
        Marketing Assistance (TMA) for Specified Agriculture Products Scheme with
        effect from 01/04/2021 therefore resulting in reinforcement of Notification
        dated 09/09/2021. Annex-‘ G’

        (B) To issue a Writ of Mandamus or appropriate writ, direction or order
        directing the Respondents to release the eligible amount to the Petitioner
        till the Scheme being in force vide Notification dated 09/09/2021 and
        Petitioner fulfilment of the criteria therein.

        (C) To issue a Writ of Mandamus or appropriate writ, direction or order
        directing the Respondent No. 2 to re-open the TMA Incentive Scheme and
        extend the validity of the Handbook of Procedures, 2015-2020 till
        31/03/2022 and accept claims of refund till 31/03/2022. Annex.- ‘F’

        (D) Any other order/direction, which Hon'ble Court deems appropriate in the
        interest of justice and for such Act of kindness, the Petitioner as is duty
        bound, shall ever pray.”


4.      Brief facts giving rise to the present petition are that, the
petitioner is a registered exporter holding the Importer Exporter Code
("IEC code" for short) engaged in the business of Export of Rapeseed
meal, Castor seed Extraction, Groundnut Extraction Meal etc to
various countries outside India. That, the Government of India through
Ministry of Commerce & Trade Introduced TMA Scheme in the Foreign
Trade Policy (2015-20) on 01.03.2019 which was effective till
31/03/2020 with an aim to provide assistance for the component of
freight and marketing for agricultural produce caused to promote
brand recognition for Indian agricultural products in the specified
overseas markets. That, the eligibility criteria for TMA included all the
exporters of eligible agriculture products, registered with the relevant
Export Promotion Council, as per the Foreign Trade. That, the TMA
scheme aimed to reimburse the part amount of freight paid (sea and
air) by the exporter and also the marketing costs involved in the
promotion of the product for export of eligible agriculture products to
the permissible countries, as specified from time to time. That, the



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petitioner, being eligible under the "TMA" scheme, availed such
benefit, renegotiated with the Prospective foreign buyers, considering
the refund of the transportation cost under the TMA scheme and
reduced the export price of the agricultural products, being exported.
That, the petitioner duly complied with the procedure as laid down
under the TMA scheme and claimed refund of the transport and
marketing expenses paid by filing returns. That, the respondent No. 2
vide Notification No. 57/2015-2020 made amendments in the Foreign
Trade Policy 2015-2020 and Extended the said TMA scheme till
31/03/2021. That, the TMA Scheme received remarkable response
from the Exporter fraternity and growth in trade and commerce and
therefore, the respondent No. 2 again vide Notification No. 60/2015-
2020 made amendments in the Foreign Trade Policy 2015-2020
extending the TMA scheme till 30/09/2021. That, the respondent No. 2
vide Public Notice No. 14/2015-2020 amended Chapter 7(A) of the
Handbook of Procedures (2015-2020) adding that the claims for
assistance under the TMA scheme for quarter ending on 31/03/2020
and 30/06/2020 could be filed upto 30/09/2021. That, the respondent
No. 1 Vide Notification Bearing No. 17/02/2021-E (Agri. IV) introduced
"Revised Transport and Marketing Assistance (TMA) for Specified
Agriculture Products Scheme" for the exports effected on or after
01/04/2021, whereby the said TMA scheme was applicable for the
exports effected from 01/04/2021 to 31/03/2022. That, in compliance
to above Notification bearing F No. 17/02/2021-EP (Agri. IV) for the
exports effected on or after 01/04/2021 introduced by the respondent
No. 1, the respondent No. 2 vide Notification No. 33/2015-2020
extended the scheme till 31/03/2022. That, the respondent No. 1
abruptly vide Notification Withdrew And Foreclosed the Notification
dated 09/09/2021 bearing F No. 17/02/2021-EP (Agri. IV) "Revised


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Transport and Marketing Assistance (TMA) vide Notification dated
25.03.2022. That, vide Notification issued on 25/03/2022 the TMA
scheme was foreclosed / withdrawn whereby, the TMA scheme which
was to be effective till 31/03/2022 under earlier notification dated
09/09/2021 bearing F No. 17/02/2021-EP (Agri. IV) was withdrawn
retrospectively whereby, the TMA would remain effective till
31/03/2021, correspondingly the respondent No. 2 vide Notification
dated 31/03/2022 bearing Public Notice No. 53/2015-2020 extended
the validity of the Handbook of Procedures, 2015-2020 till 30/09/2022.


5.      Being aggrieved and dissatisfied with the action and inaction on
the part of the respondent authorities, present petition is preferred.


6.      Heard Mr. S.A. Chhabaria, learned counsel appearing on behalf
of the petitioner and Mr. Harsheel Shukla, learned counsel appearing
on behalf of the respondents.


7.      Learned counsel for the petitioner has submitted that because
the TMA scheme introduced by the respondent No. 1 to promote
foreign trade and commerce, whereby refund of the transportation
and marketing assistance upon export of certain agricultural products
to certain countries was assured, the Petitioner, being eligible, under
the said TMA scheme, relying upon the said TMA scheme of the
Government, readjusted the rates and margins with the prospective
buyers and executed the exports accordingly, and hence, the sudden
and abrupt withdrawal of the scheme with retrospective has left the
petitioner to the situation whereby huge financial losses along with
suspension of further export business is inevitable. He has submitted
that on the introduction of Notification dated 09/09/2021 bearing F



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     C/SCA/1535/2024                                           JUDGMENT DATED: 06/05/2026




No. 17/02/2021-EP (Agri. IV) "Revised Transport and Marketing
Assistance (TMA) for Specified Agriculture Products Scheme" by the
respondent No.1, the petitioner carried out the foreign trade at the
concessional           price,   trusting      that       the   claim   refund      of       the
Transportation and Marketing assistance from the respondent No. 1
under the scheme till 31.03.2022 would be issued. He has submitted
that the respondent No. 1, despite being a public body is, not
exempted from liability to carry out its obligation arising out of
representations made which are adopted by a citizen in good faith In
the present matter. Upon the representation in form of Introduction of
Notification dated 09/09/2021 by the respondent No.1, the petitioner
had acted in accordance with the terms of TMA scheme and exported
the specific agricultural products to the specific countries at revised
concessional rates, whereby the respondent No. 1 cannot be
permitted to misuse its authority arbitrarily to refute its obligation
arising against declared TMA scheme. He has submitted that the
retrospective withdrawal of the Notification dated 09/09/2021 is
clearly against the Principle of Doctrine of Promissory Estoppel.
Learned counsel for the petitioner has referred and relied upon the
decision of the Division Bench of this Court passed in Special Civil
Application No.17285 of 2025 and other allied matters, wherein, the
very same Notification dated 25.03.2022 has been challenged before
the Division Bench and the Division Bench vide order dated
05.02.2026 has quashed and set aside the said Notification dated
25.03.2022 and therefore, learned counsel for the petitioner has
surged that the present petition be allowed.


8.      On the other hand, learned counsel for the respondents has
submitted that the Ministry of Commerce has precisely decided to


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withdraw the policy as the government intended to foreclose the
Scheme to revamp, redesign and refocus. It is submitted that the
subsidy is a matter of privilege of the Central Government and it
cannot be enforced as a right and it can be withdrawn any time. It is
thus submitted that no fundamental right of the petitioner has been
violated. Thus, it is urged that the writ petitions may not be
entertained, however, he was unable to controvert the order passed
by the Division Bench in Special Civil Application No.17285 of 2025
and other allied matters and urged that appropriate orders may be
passed.


9.       I have heard the learned counsel appearing for the respective
parties and perused the material placed on record. I have also gone
through the order passed by the Division Bench as aforesaid. After
considering both the notifications issued by the Central Government,
referring and relying upon the decision of the Hon’ble Apex Court
rendered in the case of Viraj Impex Pvt Ltd Vs. Union of India &
Anr., 2026 INSC 80 and in case of Director General of Foreign
Trade and Anr. Vs. Kanak Exports & Anr., (2016) 2 SCC 226
and after examining the provisions of Section 5 of the Act, the
Division Bench has allowed the petitions and quashed and set aside
the Notification in view of the observations made by the Hon’ble Apex
Court that Section 5 of the Act neither permits/empowers the
Government to make amendments with retrospective effect, nor it
allows to close the Scheme retrospectively, thereby taking away the
rights which have already accrued in favour of the exporters under
the Scheme.


10.      For the foregoing reasons, the present petition is allowed. The


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        C/SCA/1535/2024                                                       JUDGMENT DATED: 06/05/2026




impugned Notification dated 25.03.2022 abolition/foreclosing the
Scheme introduced vide Notification dated 09.09.2021 retrospectively
is hereby quashed and set aside. The Notification dated 25.03.2022
shall become effective from the date it was issued. Accordingly, the
respondents are directed to give the consequential effect of this order
and process the application filed by the petitioner in view of the
Scheme. All the benefits accruing till the issuance of Notification
dated 25.03.2022 shall be extended to the petitioner, including
raising claims for the period prior to the issuance of impugned
Notification, for which the petitioner was prevented from filing
application. The claim/application shall be processed and the amount
shall be paid within a period of four months from the date of receipt
of writ of this order. Rule made absolute to the aforesaid extent.
There shall be no order as to costs.



                                                                    (HEMANT M. PRACHCHHAK,J)

Dolly




Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: DOLLYBEN CHETANBHAI VADUKAR(HC01392), PRIVATE SECRETARY, at High Court of Gujarat on 08/05/2026 15:45:01


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