Case Law Details
Union Of India And Ors. Vs B. T. Patil And Sons Belgaum (Construction) Pvt. Ltd. (Supreme Court of India)
Introduction: The recent Supreme Court judgment in Union of India and Ors. vs. B.T. Patil and Sons Belgaum (Construction) Pvt. Ltd. addresses the crucial matter of interest on delayed duty drawback refunds. The court upheld the decision of the High Court of Karnataka, affirming the respondent’s entitlement to 15% interest on the delayed refund of deemed export duty drawback.
The Hon’ble Supreme Court in the case of Union of India and Ors. v. M/s. B.T. Patil and Sons Belgaum (Construction) Pvt. Ltd. [Civil Appeal No. 7238 of 2009 dated February 05, 2024] upheld the decision of the Hon’ble Division Bench of High Court of Karnataka where the Respondent was awarded 15% interest on the delayed refund of deemed export duty drawback on construction of civil work. Therefore, the interest was to be calculated from the date on which the application for refund was filed.
Facts:
M/s. B.T. Patil and Sons Belgaum (Construction) Pvt. Ltd. (“the Respondent”) was a class-I contractor specializing in the field of civil contract works, especially funneling and hydroelectric power projects. The Central Government had approved funding for the Koyna Hydro Electric Power Project from the International Bank for Reconstruction and Development. The Respondent was awarded a sub-contract to execute civil works from Lake Intake to the Emergency Valve Tunnel.
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