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Issues involved: Applicability of principle of unjust enrichment in the case of refund claimed after finalization of provisional assessment of bill of entry.
Analysis: The issue in this appeal revolves around the applicability of the principle of unjust enrichment concerning a refund claimed after the finalization of provisional assessment of a bill of entry. The Commissioner (Appeals) permitted the refund, citing decisions from the Supreme Court in specific cases. It was noted that the goods in question were exported outside the country and not utilized within India, leading to the conclusion that the duty incidence did not arise. However, the department contested this decision, referring to a judgment by the Hon'ble Mumbai High Court in a different case, which was upheld by the Supreme Court. This judgment emphasized that the refund of duty on provisional assessment must adhere to the procedures outlined in the Customs Act, 1962. Additionally, another Supreme Court ruling was cited to support this stance. The Commissioner's observation regarding the goods being sent abroad was challenged, asserting that Section 27 of the Act does not differentiate based on whether the excess duty-paid goods were used in India or overseas. This argument remained unopposed. Consequently, the Tribunal concluded that the Commissioner's order was unsustainable, leading to its reversal, and the Revenue's appeal was granted. This comprehensive analysis highlights the conflicting interpretations regarding the refund process after provisional assessment, the relevance of the principle of unjust enrichment, and the significance of the goods being exported outside India in determining the duty incidence. The Tribunal's decision to set aside the Commissioner's order and allow the Revenue's appeal underscores the importance of adhering to the procedural requirements under the Customs Act, irrespective of the location of utilization of the goods in question.
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