Interim restraint on drawback recovery pending further orders after the underlying clarification was struck down by the Delhi High Court.

Interim protection was granted against coercive recovery of drawback already released to the petitioners, because the impugned clarification dated 25 September 2020, which formed the basis for recovery, had already been struck down by the Delhi High Court. The Court therefore directed the respondents not to take coercive steps to recover the drawback until further orders, while leaving the parties free to seek appropriate relief if the Supreme Court later passes any order on the issue. The operative legal effect was a temporary restraint on recovery action pending further developments.

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Issues: Whether the respondents should be restrained, pending further orders, from taking coercive steps to recover drawback already granted to the petitioners on the basis of the impugned clarification dated 25 September 2020.

Analysis: The impugned clarification forming the basis of recovery had already been struck down by the Delhi High Court. In the circumstances, the Court considered it appropriate to grant interim protection and to avoid coercive recovery steps until further orders, with liberty to the parties to seek appropriate orders if the Supreme Court passes any order on the issue.

Outcome: The respondents were directed to take no coercive steps to recover the drawback already granted to the petitioners until further orders.

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