CHEMICALS AND FIBRES OF INDIA LTD. ETC. vs UNION OF INDIA

The Supreme Court held that under Section 75 of the Customs Act, 1962 and Section 37 of the Central Excises & Salt Act, 1944, the Central Government has the authority to provide for the repayment of customs and excise duties. However, the Customs and Central Excise Duties Drawback Rules, 1971, specifically Rule 3, only allow for a refund of the average amount of duty paid on materials of certain classes, and di-methyl-terephthalate (DMT) was not included in the notification for drawback. Consequently, the Court dismissed the appeals but recommended that the Central Government consider the appellants' case on equitable grounds for potential relief.