In Brief
M/s. Suraj Impex, an exporter of Soyabean Meal, claimed a 1% All-Industry Rate (AIR) customs duty drawback on its exports. The Department initially denied this benefit if the exporter had also availed of central excise duty rebates. The CBEC issued a clarificatory circular in September 2010 stating that both benefits could be claimed simultaneously. The High Court held the circular operated prospectively from its effective date. The Supreme Court reversed this, holding that clarificatory circulars resolving ambiguity in earlier notifications operate retrospectively. Since the circular merely clarified an existing benefit rather than creating a new one, the exporter was entitled to the 1% drawback from 2008 onwards.
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