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Issues: (i) Whether the duty drawback amounts directed to be processed and released in the judgment dated 13 February 2025 should be released to the petitioner and (ii) Whether statutory interest for the previous period is payable to the petitioner where the drawback amounts have not been released despite final dismissal of the Department's SLP.
Issue (i): Whether the duty drawback amounts directed by this Court in its judgment dated 13 February 2025 are to be processed and released to the petitioner.
Analysis: The Court noted that its earlier judgment quashed the CBIC Clarifications and directed processing of individual drawback claims. The Department's challenge was dismissed by the Supreme Court and the three-month period for processing (as contemplated in the earlier order) has expired without payment to the petitioner. The Court observed absence of any lawful reason for withholding the drawback amounts after final disposal of the SLP and recorded that the Customs Department must process the claims in accordance with law.
Conclusion: The petitioner is entitled to release of the duty drawback amounts as directed by the judgment dated 13 February 2025; the Customs Department is required to process and release the eligible drawback amounts in accordance with law.
Issue (ii): Whether statutory interest for the previous period is payable to the petitioner where the drawback amounts were not released despite finality of the earlier judgment.
Analysis: The earlier judgment declined interest for the previous period because of an acknowledged ambiguity in the legal position. After dismissal of the Department's SLP and expiry of the period allowed for compliance, the Court found no justification for continued non-payment. The Court therefore expressed its inclination to grant interest for the past period and directed the responsible official to appear with instructions; consideration of statutory interest was reserved to the next hearing.
Conclusion: The Court inclined to award statutory interest for the previous period in favour of the petitioner and directed the Customs Department to explain non-payment and process interest on eligible drawback amounts in accordance with law.
Final Conclusion: The Court directed the Customs Department to comply with the earlier judgment by processing and releasing the eligible duty drawback amounts and to address payment of statutory interest for the past period; the matter was remitted to the Department for compliance and listed for further consideration.
Ratio Decidendi: Where an administrative clarification contrary to the Court's interpretation has been quashed and the Department's challenge has been finally dismissed, eligible duty drawback claims must be processed and released in accordance with law and statutory interest may be payable for the period of delay once the Department fails to comply within the time fixed by the Court.
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