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Issues:
Interpretation of public notices regarding customs duties drawback entitlement and rates; retrospective application of public notice dated 7th April 1978; recovery of erroneously refunded drawback amounts; application of Section 28 of the Customs Act, 1962; estoppel in claiming repayment of drawback amounts; vires of Rule 14. Analysis: The judgment revolves around the interpretation of public notices related to customs duties drawback entitlement and rates. The Central Government, under Section 75 of the Customs Act, 1962, can allow drawback on imported materials used in goods manufactured in India and exported. A public notice issued on 15th October 1971 listed materials entitled to drawback and their rates. Subsequently, on 7th October 1977, changes were made to the Schedule, affecting the entitlement to drawback for specific goods, including cut and polished diamonds. The crux of the issue arises from a public notice dated 7th April 1978, which stated the deletion of certain entries from the Schedule. Importers who had declared their intent to export imported rough diamonds after cutting and polishing them within six months, as per the earlier public notice, claimed and received drawback amounts. However, post the April 1978 notice, they were asked to refund the amounts erroneously paid, triggering legal disputes. The petitioners argued that the April 1978 notice could not have retrospective effect, and the claims for refund were time-barred under Section 28 of the Customs Act. The Assistant Collector of Customs demanded repayment, leading to appeals and subsequent dismissal by the Appellate Collector of Customs. The latter held that the deletion of entries from the Schedule in the April 1978 notice meant that no drawback was due post that date, justifying the recovery of erroneously paid amounts. The judgment delves into the principle of promissory estoppel, stating no promise was made to the importers, and the doctrine did not apply in this scenario. The judgment also addresses the argument that the April 1978 notice should only apply prospectively, citing a Supreme Court case precedent. The Customs Appellate Tribunal had a similar view, supporting the petitioners' stance. Consequently, the court ruled in favor of the petitioners, declaring them entitled to interest on bank guarantees realized by the respondents. The judgment emphasizes the prospective application of the April 1978 notice and directs the respondents to pay costs to the petitioners. In conclusion, the judgment clarifies the application of public notices, the limitation period for claiming refunds, and the prospective interpretation of regulatory changes affecting customs duties drawback entitlement, providing a comprehensive analysis of the legal issues involved.
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