Duty drawback under SEZ rules: plausible factual findings and substantial compliance shielded the writ court's grant from interference.

Interference with a writ court's grant of duty drawback under the Special Economic Zone regime is limited to jurisdictional error, breach of natural justice, an apparent error of law, or findings that are perverse, grossly unreasonable or unconscionable. The court accepted that the unit functioned as part of the same enterprise, allowed intra-entity transfer of goods for manufacture, and treated the payment mechanism for domestic tariff area procurement as substantial compliance with the SEZ Rules. As the factual findings were plausible and supported by the record, the appellate court declined to reappreciate evidence and left the drawback order undisturbed.

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Issues: Whether the writ court's order granting duty drawback under the Special Economic Zone regime called for interference in appeal, particularly on the findings that the unit was part of the same entity and that the payment mechanism amounted to substantial compliance with the applicable rules.

Analysis: The dispute turned on the characterization of Kariwala Green Bags as a division of the same enterprise and not a separate entity, the permissibility of intra-entity transfer of goods for manufacture, and whether the requirement under the Special Economic Zone Rules regarding procurement of domestic tariff area goods through a foreign currency account was satisfied in substance. The appellate court reiterated that interference with factual findings is confined to cases of jurisdictional error, breach of natural justice, apparent error of law, or findings that are perverse, grossly unreasonable, or unconscionable. Where the factual findings are plausible and supported by the record, the court will not reappreciate evidence or substitute its own view.

Conclusion: The findings in favour of the duty drawback claimant were held to be plausible and not perverse, and the order allowing the drawback claim was left undisturbed.

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