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Applicability of the bar of unjust enrichment to capital goods imported and used in the manufacture of final products but not consumed. Analysis: The dispute in the present case revolves around the application of the doctrine of unjust enrichment to capital goods imported and utilized in the manufacturing process of final products without being consumed. The appellants imported construction machinery to establish a fertilizer project for Indian Farmers Fertiliser Co-operative Ltd. (IFFCO) and provided services for the project without selling the imported items to IFFCO. The authorities concluded that unjust enrichment applied because duty would have been recuperated through service charges for setting up the plant for IFFCO. It is undisputed that the goods in question were capital goods utilized by the appellants for setting up the plant for IFFCO and were not consumed during the manufacturing process. In light of this factual context, the Tribunal referred to the case of Black Diamond Beverages v. CC, Calcutta, where it was held that the doctrine of unjust enrichment under Section 27 of the Customs Act, 1962 does not apply to capital goods imported and used for manufacturing final products without being consumed. The Tribunal's decision was further supported by the dismissal of the Revenue's civil appeal by the Supreme Court due to the insignificance of the amount involved. Additionally, the Tribunal's order was based on the judgment of the Madras High Court in the case of Indo-Swiss Synthetics (Mfg.) Ltd., which established that the bar of unjust enrichment does not extend to capital goods imported and used but not consumed in the manufacturing process. Therefore, in line with the precedent set by the Tribunal in the case of Black Diamond Beverages v. CC, Calcutta, the impugned order was set aside, and the appeal was allowed with any consequential relief due to the appellants as per the law.
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