2006 (4) TMI 501 - SC - Customs

Summary

Issues involved: Doctrine of unjust enrichment in provisional assessment under Section 18 of the Customs Act and Rule 9B of the Central Excise Rules.

Summary:
The Supreme Court addressed the issue of the applicability of the doctrine of unjust enrichment in provisional assessment under Section 18 of the Customs Act and Rule 9B of the Central Excise Rules. The Tribunal, following its earlier decision, held that the doctrine of unjust enrichment does not apply to provisional assessment. A two-Judge Bench of the Court noted inconsistencies in previous decisions and doubted the correctness of certain judgments. A three-Judge Bench later held that one of the previous judgments was per incuriam and approved another decision, stating that the doctrine of unjust enrichment does not apply to provisional assessment even after finalization. The present case was found to be covered by the three-Judge Bench decision, and thus the appeals were dismissed, affirming the Tribunal's order. No costs were awarded.