UNION OF INDIA vs M/S. B.T. PATIL AND SONS BELGAUM (CONSTRUCTION) PVT. LTD.

The Supreme Court upheld the decision of the Karnataka High Court affirming the grant of duty drawback benefits under the 'deemed export' scheme as per the Exim Policy, 1992-1997, despite earlier rejections by the Director General of Foreign Trade (DGFT). The Court emphasized that the respondent's civil construction work for the Koyna Hydro Electric Power Project qualified for such benefits, as clarified by subsequent circulars issued by the DGFT. The ruling established that the interpretation of 'deemed export' benefits must align with the evolving policy framework, thereby allowing the respondent's claims for duty drawback to be reconsidered favorably.