SIM Insertion for Unlocking Mobile Phones to Unlock Region Settings is ‘Configuration’: Delhi HC Quashes CBIC Clarifications on Duty Drawback

Delhi High Court quashed CBIC clarifications on duty drawback, holding that SIM insertion for unlocking mobile phones' region settings is "configuration." The court disagreed with the CBIC's view that this process amounted to "manufacture" or "processing" that would affect duty drawback eligibility. The High Court reasoned that inserting a SIM to change region settings is merely a configuration adjustment to enable the phone's intended functionality. This ruling provides relief to businesses involved in importing and configuring mobile phones, clarifying the scope of duty drawback regulations.