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- Applicability of unjust enrichment in cases of provisional assessment under the Customs Act, 1962. Analysis: 1. Applicability of Unjust Enrichment: The main issue in this case was whether the doctrine of unjust enrichment applies to cases of provisional assessment under the Customs Act, 1962. The lower appellate authority had held that the bar of unjust enrichment does not apply in such cases. The appellant argued that even without a specific provision in the law, a person cannot claim or retain undue benefit, citing a Supreme Court decision emphasizing the doctrine of unjust enrichment. However, the respondent contended that under Section 18 of the Customs Act, 1962, refunds arising after finalization of assessment are admissible, and there is no specific provision subjecting such refunds to the bar of unjust enrichment under the Customs Law. 2. Judicial Precedents and Interpretation: The appellant relied on a Supreme Court decision in the case of Sahakari Khand Udyog Mandal Ltd., while the respondent cited the decision in the case of Commissioner of C. Ex., Mumbai-II v. Allied Photographics India Ltd. The Tribunal noted that the decision in the case of Allied Photographics specifically addressed refunds arising from finalization of provisional assessment and was passed by a three-judge bench of the Supreme Court. As this decision had not been overruled by a larger bench, the Tribunal held that the doctrine of unjust enrichment cannot be applied to refunds arising from finalization of provisional assessment under the Customs Law, especially in the absence of a specific amendment similar to the one in the Excise Law. 3. Decision and Rationale: The Tribunal emphasized that while the decision in Sahakari Khand Udyog Mandal Ltd. may conflict with the decision in Allied Photographics, the latter's specificity to refunds from finalization of provisional assessment under the Customs Law prevailed. Therefore, the Tribunal rejected the Revenue's appeal, ruling that the bar of unjust enrichment does not apply to refunds arising from finalization of provisional assessment under the Customs Law, given the absence of a specific amendment similar to that in the Excise Law. The Tribunal's decision was based on the interpretation of relevant legal provisions and judicial precedents, ensuring consistency in the application of the law. In conclusion, the Tribunal's judgment clarified the application of the doctrine of unjust enrichment in cases of provisional assessment under the Customs Act, 1962, based on legal provisions, judicial precedents, and the absence of specific amendments in the law. The decision provided a nuanced analysis of conflicting precedents and upheld the principle that refunds arising from finalization of provisional assessment under the Customs Law are not subject to the bar of unjust enrichment unless specifically provided for by law.
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