Jurisdictional clarification and SEZ rule amendment required prompt adjudication of customs refund claims with interest on sanction.

Statutory amendment inserting Rule 47(5) of the Special Economic Zone Rules, 2006 and the later jurisdictional clarification removed earlier uncertainty over the authority competent to process refund claims for special additional duty of customs on goods imported into an SEZ and sold in the domestic tariff area. In light of the remand for fresh consideration, continued inaction by the authorities was not justified. The refund application was required to be adjudicated without delay, and if sanctioned, the amount was to be disbursed with interest through electronic mode.

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Issues: Whether the petitioner was entitled to a direction for expeditious adjudication of its refund claim for special additional duty of customs along with consequential interest, and whether the respondent authorities could continue to withhold action despite the statutory amendment and the later clarification on jurisdiction.

Analysis: The refund claim arose from import of goods into a Special Economic Zone and subsequent sale into the domestic tariff area. The earlier rejection was founded on the absence of an express provision and uncertainty as to the competent authority. That uncertainty stood resolved by the amendment inserting Rule 47(5) of the Special Economic Zone Rules, 2006 and by the later circular clarifying that refund applications were to be dealt with by the jurisdictional Customs and Central Excise authorities. In view of the appellate order remanding the matter for fresh consideration and the subsequent administrative clarification, there was no justification for continued inaction. The prolonged failure to decide the claim was treated as unacceptable, and the Court directed that the refund be adjudicated without delay and, once sanctioned, paid with interest through electronic mode.

Conclusion: The petitioner succeeded. The authorities were directed to decide and disburse the refund claim with interest, and the matter was allowed.

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