( 1 ) INTHI spetition under Article 226 of the constitution, thefirst petitioner-Company [hereinafter referred toas"thepetitioner"]haschallengedthe amendments/corrections to paragraph 3. 7. 2. 1 of the Export importpolicy[theeximpolicy]by the notifications dated 28. 1. 2004 (para 5)and21. 4. 2004readwiththe notificationdated 23. 4. 2004 issued by the Government of india in exercise of the powers under Section5ofthe foreigntrade (Development and Regulation) Act, 1992 read with para 1. 1 of the Export and Import Policy 2002-07. The petitioner has also challenged paragraphs 1, 2 and3of thepublic notice dated 28. 1. 2004 issued by the Director general of Foreign Trade (DGFT)[thesecondrespondent herein]amendingparagraph3. 2. 6ofthe Hand Book of procedure. The amendments/corrections to the EXIM POLICY and the public notice pertain to Duty Free Import Entitlement for Export Status Holders. In particular, the petitioner has challengedthe aforesaidnotificationsand the public notice in so far asthe amendments/corrections are expressly made applicable tothe exports made from 1. 4. 2003 i. e. prior to the date of the notifications and the public notice.

( 2 ) THE relevant provisions falling for consideration are as under :-2. 1 undertheeximpolicy 2002-07 as introduced on 1. 4. 2002,thecentralgovernmentannounced "special strategicpackageforstatusholders"[hereinafter referred to as "the Specialscheme"or"theincentive scheme"]. Theterm"statusholder"isdefinedby paragraph 9. 53 of the Exim Policy as under :- "9. 53 "status Holder" means an exporter recognized as"exporthouse/tradinghouse"by dgft/developmentcommissionerasstartrading house/super Star Trading Housebythedirector general of Foreign Trade. " asperthe "special Scheme", the status holders are eligible for certain specialfacilities. Forthe purposesofthepresent petition, the other facilities are not relevant, but the Eximpolicyasamendedupto 31. 3. 2003 provided for the following new facility :- " (vi) dutyfreeimport entitlement for status holders having incremental growthofmorethan 25%infobvalueofexports (in free foreign exchange) subject to a minimum export turnover of rs. 25 crore (in free foreign exchange ). The duty free entitlement shall be 10% of theincremental growth inexports. Such entitlement can be used for import of capital goods, office equipment and inputs for their own factory orthefactoryof theassociate/suporting manufacturer/job worker. The entitlement/good shall not be transferable. " (emphasis supplied) [thisclausewasinitially numbered as (vi) in theeximpolicyamendedupto31. 3. 2003 and appearstohave been subsequently renumbered as (vii)] the Specialschemeasamendedupto31. 3. 2003 providedthatonthebasisofthe exports made from 1. 4. 2003 to 31. 3. 2004, duty free import entitlement shall be provided from 1. 4. 2004. 2. 2 bytheimpugnednotificationdated28. 1. 2004 (ANNEXURE "b"), facility No. (vii) is retained in the same terms, but the following notes are added to the same :- "note1-Forthepurpose of calculating the value of exports, the following exports shall not be taken into account, namely :- (i) Re-exportofimportedunitsoperating undersez/eou/ehtp/stpi Schemes or products manufactured by them and exported through DTA units. (ii) Export turnover of units operatingunder sez/eou/ehtp/stpi Schemesorproducts manufactured by them and exported through dta units. (iii) Deemed exports (evenwhenpaymentsare receivedinfreeforeign Exchange) and payment from EEFC account. (iv) Service exports. (v) Supplies made byonestatusholderto another status holder. (vi) Exportperformancemadebyone status holder on behalf of otherstatusholder willnotbeeligibleforentitlement under the scheme. (vii) Supplies made orexportperformance effected by a non-status holder (Merchant exporter/manufacturerwithany export performance in2003-04)toastatus holder if the applicant aswellasthe non-status holderhavelessthan25 percentincrementalgrowthovertheir respectivepreviousyears direct export turnover