TaxTMI 
TaxTMI 
2026 (5) TMI 813
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....is engaged in trading of various brands mobile phones viz., Samsung, Redmi, Oppo, Honor, Motorola etc. They procure mobile phones locally from authorized channel partners in India and thereafter export the same through Air Cargo Complex Customs Commissionerate (ACC), Sahar, Mumbai. Against the export transactions undertaken in various Shipping Bills (S/Bs) by appellant exporter during the disputed period 2018-2019, in respect of 46 S/Bs out of total 112 S/Bs filed for export of mobile phones, the appellant exporter had claimed drawback benefits. An investigation was initiated by the Special Investigation and Intelligence Branch of the ACC, Sahar (SIIB-X), on the basis of a clarification issued by the Drawback Division of Central Board of Indirect Taxes & Customs (CBIC) vide letter F. No. 609/ 4/2020DBK/1063 dated 25.09.2020 with respect to admissibility of duty drawback on export of 'unlocked/tested' mobile phones by merchant exporters. Further, statements were also recorded from various persons concerned and documents were also obtained from the appellants. It was observed by SIIB-X that the mobile phones which were locally procured by the appellants, were subjected to usage prior....
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....00/- on the appellant company and Rs.2,00,00,000/- on the appellant Shri Manjeet Jha under Section 114AA ibid. Feeling aggrieved with the said order dated 30.09.2024, which is impugned herein, the appellants have filed these appeals before the Tribunal. 3.1 During course of hearing of the appeals, learned Advocates for the appellants submitted that issue in these appeals is no more res integra in view of judgment passed by Hon'ble High Court of Delhi in the case of AIMS Retail Services Pvt. Ltd. & Anr. Vs. Union of India & Ors., reported in (2025) 28 Centax 243 (Del.), by which order the said clarificatory Circular dated 25.09.2020 had been quashed with an observation that unlocking/ activating of the mobile phones so as to enable the same to be used in a particular geographical territory outside India is mere 'configuration' of the product to make it usable and does not constitute "taken into use" under Proviso to Rule 3 of the Drawback Rules and therefore, nothing survived so as to make the order passed by the Commissioner enforceable. Learned Advocate further brought it to the attention of this Bench that the said decision of the Hon'ble Delhi High Court has attained ....
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.... pending before any other forum. Earlier vide Note dated 16.10.2025, the said Coordinate Bench had observed that it is imperative for the appellants to withdrawn their appeals from one of the forum so as to make them entitled to get appropriate relief from the other forum. Accordingly, the said Co-ordinate Bench restrained in passing any order and released these appeals from 'reserved order category' to be listed for fresh hearing upon compliance with the above directions of withdrawal. Based on the submissions made by the learned Advocate for the appellants, the matter was verified with the facts on record and the official website of the Hon'ble High Court of Bombay. In the judgement dated 01.10.2025 passed by the Hon'ble High Court of Bombay, in disposal of the W.P. No. 2848 of 2021, the name of petitioners have been mentioned as Kisha Telelinks Private Limited & Anr. However, on careful scrutiny of the complete details of the name of the petitioners it is noted that for the W.P. No. 2848 of 2021 lodged in the official data base with CNR No. HCBM 02010852021 with lodging No. WPL/10805/2021 filed on 27.04.2021 the names of the appellant herein viz., SOL Mobiles Private Limited als....
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....tion' of the product to make it usable and does not constitute "taken into use" under proviso to Rule 3 of the Duty Drawback Rules. The Clarifications go beyond Section 75 of the Act and the Duty Drawback Rules since the interpretation sought to be given by CBIC is that unlocking/ activation of mobile phones constitutes "taken into use". The said interpretation which is contained in the Clarifications is not sustainable. Accordingly, the Clarifications issued by the CBIC are quashed." 7.3 The above decision of the Hon'ble High Court was subsequently appealed before the Hon'ble Supreme Court by the department in Civil Appeal Diary No. 30758/2025. The said case was decided vide judgement dated 18.07.2025, wherein the Hon'ble Supreme Court by agreeing with the views of the Hon'ble High Court, had dismissed the Civil Appeals filed by the department. The extract of the said judgement of the Hon'ble Supreme Court dated 18.07.2025 is given below. 8. In view of the foregoing and on the basis of the judgements delivered by the Hon'ble Supreme Court in the case of Aims Retail Services Private Limited dated 29.01.2026, arising out of same issues under consideration and ....
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....:- Disposed Disp.Type :- DISPOSED OFF Disp. Date :- 01/10/2025 Disp.By :- HON'BLE SHRI JUSTICE M.S. SONAK HON'BLE JUSTICE ADVAIT M. SETHNA Last Date :- 01/10/2025 Stage :- FOR CIRCULATION Last Coram :- HON'BLE SHRI JUSTICE M.S. SONAK HON'BLE SHRI JUSTICE JITENDRA SHANTILAL JAIN Document 2 1 ITEM NO. 23 COURT NO. 9 SECTION XIV SUPREME COURT OF INDIA RECORD OF PROCEEDINGS SPECIAL LEAVE PETITION (CIVIL) Diary No. 30758/2025 [Arising out of impugned final judgment and order dated 13-02-2025 in WPC No. 9461/2023 13-02-2025 in WPC No. 10362/2023 13-02-2025 in WPC No. 10365/2023 13-02-2025 in WPC No. 10367/2023 13-02-2025 in WPC No. 10379/2023 13-02-2025 in WPC No. 10382/2023 13-02-2025 in WPC No. 10932/2023 13-02-2025 in WPC No. 10936/2023 13-02-2025 in WPC No. 10947/2023 13-02-2025 in WPC No. 10975/2023 13-02-2025 in WPC No. 11030/2023 13-02-2025 in WPC No. 14407/2024 13-02-2025 in WPC No. 14454/2024 13-02-2025 in WPC No. 1449/2024 13-02-2025 in WPC No. 1499/2024 13-02-2025 in WPC No. 8488/2024 13-02-2025 in WPC No. 891/2024 13-02-2025 in WPC No. 468/2025 13-02-2025 in WPC No. 496/2025 13-02-2025 in WPC No. 516/2025 13-02-2025 in WPC No. 518....