Clarificatory Circular aiding Parent Provision can be Retrospective: Supreme Court sustains 1% AIR Customs Duty on Soyabean Meal

Supreme Court upholds retrospective air customs duty on soyabean meal, ruling clarificatory circulars can aid parent provisions retroactively. The Supreme Court has upheld the retrospective application of air customs duty on soyabean meal. The Court ruled that a clarificatory circular issued by the Central Board of Excise and Customs (CBEC) in 2010, which explained the availability of duty drawback benefits, could be applied retrospectively. The Supreme Court emphasized that if a circular merely clarifies existing notifications and does not introduce a new fiscal regime or burden, it can have retrospective effect to ensure fairness and give full effect to the original legislative intent, particularly if it is a benevolent measure.