2018 (8) TMI 1698 - AT - Customs

Refund of Revenue Deposit - rejection on the ground of unjust enrichment - provisional assessment - Held that - The provisional assessment was finalized after 14.07.2006. The doctrine of unjust enrichment will apply in the appellant s case more so in this case of refund of revenue deposit. As the appellants have reflected the amount in the balance sheet on the asset side as amount receivables from the revenue department and they have also explained the reason for less claim being made which has escaped the attention of the Court below leading to erroneous observation on the Chartered Accountant certificate and refund claim - appellant is entitled to refund. Refund allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Appeal against rejection of claim for refund of revenue deposit on the ground of unjust enrichment.

Analysis:
1. The appellant imported goods and filed bills of entry between August 2004 to November 2007, with some entries post the amendment of Section 18 of the Customs Act in 2006, which introduced the doctrine of unjust enrichment for provisional assessments.
2. The Asst. Commissioner sanctioned the refund claim but directed the amount to be credited to the consumer welfare fund instead of paying to the appellant.
3. The Commissioner (Appeals) upheld the rejection of the refund claim citing the principle of unjust enrichment and discrepancies in the amount claimed by the appellant.
4. The appellant argued that the Supreme Court's decision in Oriental Exports clarified that the doctrine of unjust enrichment applies prospectively from 14.07.2006 and not retrospectively.
5. The Tribunal considered the application of unjust enrichment in the case of refund of revenue deposit, citing various judgments including Sahakari Khand Udyog Mandal Ltd., Madhucon Bina Puri, and United Spirits Ltd.
6. The Tribunal held that the appellant is entitled to a refund of the amount deposited, minus certain amounts, as unjust enrichment did not apply. The appellant demonstrated the amount in their balance sheet as recoverable from the revenue department, justifying the refund claim.
7. The Tribunal directed the assessing authority to grant the refund within 30 days with interest as per the Rules.

This detailed analysis covers the issues involved in the legal judgment comprehensively, outlining the arguments presented, the decisions made by the authorities, and the final ruling by the Tribunal.