Court upholds writ petition, cancels show cause notices, grants refunds, affirms Policy Interpretation Committee's decision.

The Court allowed the writ petition, relying on a previous Division Bench judgment in Patel Engineering, and granted the reliefs sought by the petitioners, including cancellation of show cause notices, refund of amounts, and a declaration regarding the Policy Interpretation Committee's decision. Despite the Revenue's challenge in the Supreme Court, the Court upheld the previous judgment's binding nature, ruling in favor of the petitioners without costs.

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Issues:
Challenge to show cause notices and demand letters seeking recovery of amounts, legality of decision by Policy Interpretation Committee, entitlement to deemed export benefit.

Analysis:
The writ petition sought various reliefs, including the cancellation and withdrawal of impugned show cause notices and demand letters, refund of wrongly recovered amounts, and a declaration regarding the decision of the Policy Interpretation Committee. The Court noted similarities with a previous case and referred to a judgment reported in 2014. The respondents sought to recover an amount from the petitioners due to their inclusion in the "Denied Entity List," which the petitioners refunded under protest. The petitioners argued that the denial of deemed export benefit and the recovery sought were without jurisdiction and illegal. The Senior Counsel for the respondents contended that the writ petition was not maintainable, but also defended the Revenue's position on merits, citing a pending challenge in the Supreme Court against a Division Bench judgment. Despite arguments from both sides, the Court found the issue covered by the previous Division Bench judgment in Patel Engineering and upheld its decision.

The Court, after hearing both parties, concluded that the matter was already settled by the Division Bench judgment in Patel Engineering. The Revenue's challenge in the Supreme Court did not affect the binding nature of the previous judgment. Therefore, the Court allowed the writ petition based on the precedent set by the earlier case. The ruling made the rule absolute in favor of the petitioners, granting the reliefs sought in prayer clauses (a) and (b) without imposing any costs.

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