Ujjal Bhuyan JUDGMENT
Ujjal Bhuyan, J.
1. Appellants i.e., Union of India, Director General of Foreign Trade and Joint Director General of Foreign Trade by means of this civil appeal have taken exception to the judgment and order dated 22.08.2008 passed by a Division Bench of the High Court of Karnataka, Circuit Bench at Dharwad in Writ Appeal No. 356 of 2006 affirming the judgment and order of the learned Single Judge dated 22.09.2005 allowing Writ Petition No. 45525 of 2004 filed by the Respondent.
2. Facts lie within a narrow compass. Nonetheless, for a determination of the lis, it would be necessary to briefly narrate the relevant facts as projected by the Respondent in the related writ petition.
2.1. Respondent is a class-I contractor specializing in the field of civil contract works especially funneling and hydro electric power projects.
2.2. Central Government had approved funding of a project called Koyna Hydro Electric Power Project, Maharashtra by the International Bank for Reconstruction and Development, which is an arm of the World Bank. In the said project, Respondent was awarded a sub-contract to execute civil works from Lake Intake to the Emergency Valve Tunnel. Respondent has relied upon a letter dated 08.08.1991 issued by the Chief Engineer of the project. Relevant portion of the letter reads thus:
4.2. Information regarding the benefits available under the "Deemed Export" concept for this World Bank Aided (Loan) Project may please be obtained by the contractors from their own sources and the information gained by them may be utilised, while quoting the rates.
2.3. A deemed export scheme was announced under the Exim Policy, 1992-1997 by the Ministry of Commerce, Government of India and the Director General of Foreign Trade under the Foreign Trade (Development and Regulation) Act, 1992. Certain benefits under 'deemed export' were also included in the said Exim Policy.
2.4. Respondent completed the construction work awarded to it in the month of March, 1996 and thereafter filed applications dated 25.03.1996, 13.09.1996 and 20.12.1996 claiming duty drawback for Rs. 35,75,679.00, Rs. 88,9........