Circular-Retrospective, Retroactive or Prospective.

Circulars-Retrospective, Retroactive or Prospective. The Supreme Court in Suraj Impex (India) Pvt. Ltd. v. Union of India & Ors. held that CBEC Circular No. 35/2010-Cus, clarifying eligibility for 1% customs component duty drawback, is clarificatory and thus retrospective in effect. The Court ruled that exporters availing rebate under Rules 18/19(2) are still entitled to AIR drawback. The circular was not a new benefit but an explanation of existing law. Hence, Suraj Impex was wrongly denied drawback for the pre-2010 period. The judgment reinforces that clarificatory circulars apply from the date of original notification, not just prospectively. J the App by JustIDT is delighted to share their take on the way froward post the Honble SC's judgement.