Revenue's view that unlocking exported phones is "taken into use" under proviso to Rule 3(1) and Section 75 rejected

The SC dismissed the special leave petition and upheld the HC order, rejecting the Revenue's contention that unlocking/activation of exported mobile phones constitutes being "taken into use" under the proviso to Rule 3(1) of the Drawback Rules and Section 75 of the Customs Act. The court found no reason to disturb the High Court's conclusion that unlocking/activation merely enhances usability in the destination country and does not disentitle the exporter from claiming duty drawback.

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Supreme Court recorded that "delay condoned." After hearing counsel and "having gone through the materials on record," the Court found "no good reason to interfere with the common impugned order passed by the High Court." Consequently the Special Leave Petitions were "dismissed." All pending applications stand disposed of. The decision is procedural and appellate: the Court declined interference with the High Court's impugned order on the basis of the record and submissions, resulting in summary dismissal of the appeals.

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