Union Of India vs M/S Indian Oil Corporation Ltd

The Supreme Court upheld the High Court's decision directing the railway administration to refund excess freight charges levied on the respondent for consignments transported between 2002 and 2005. The Court emphasized that the Ministry of Railways' circular dated 07.04.2004, which rationalized the method for calculating chargeable distance, was not retroactive and thus could not justify the earlier charges. The Court confirmed that the railway administration's failure to apply the new methodology resulted in an unlawful levy, warranting a refund to the respondent.