Madras HC quashed disproportionate drawback recovery and ordered refund with interest.
Madras High Court quashed a delayed recovery of duty drawback, directing de-freezing of the exporter’s bank account and refund of ₹3.51 lakh with default interest. The department’s action was taken beyond a reasonable period, violating principles of natural justice.
The court emphasized that statutory authorities must act with due expedition. Unwarranted delays in initiating recovery negate deterrence objectives and prejudice honest exporters.
This decision strengthens exporter protections against arbitrary enforcement. Legal advisors should challenge time-barred actions and seek restitution where delays are inordinate and unexplained.
Practice Areas:customs