2012 (9) TMI 677 - AT - Customs

Refund claim unjust enrichment Held that - Appellant produced CA s certificate that which certify that Company has neither debited the amount to Manufacturing, Trading and Profit & Loss Account nor recovered the above said amount from the Parties/Debtors - this is not a case where doctrine of unjust enrichment is applicable - appellant is entitled for the refund sanctioned

Summary

Issues:
Appeal against order of Commissioner (Appeals) regarding refund under Section 27(2) of the Act and unjust enrichment doctrine applicability.

Analysis:
The appeal was filed by M/s. Atlantic Shipping Pvt. Ltd. against the order of the Commissioner (Appeals) which directed the refund amount to be credited to the Consumer Welfare Fund based on the doctrine of unjust enrichment. The appellant, a shipping agent, sought conversion of a vessel from foreign run to coastal run, leading to a provisional assessment of the bill of entry. The original adjudicating authority sanctioned the refund but ordered it to be credited to the Fund. The appellant argued that the doctrine of unjust enrichment did not apply in their case as they had paid a notional duty deposit and were entitled to a refund as per relevant Board's letter and had submitted a Chartered Accountant certificate.

During the hearing, it was noted that a similar case had been decided by the Tribunal in favor of the party, emphasizing that the duty deposit was made on an estimation basis and not entirely utilized in India, thus unjust enrichment did not apply. The High Court and CESTAT's decisions in other cases also supported the view that the doctrine of unjust enrichment does not apply when adjusting amounts paid on provisional assessments. The Chartered Accountant's certificate submitted was found to be valid and reliable, confirming the non-recovery of the deposited amount from parties or debtors.

Considering the precedents and the evidence presented, the Tribunal concluded that the doctrine of unjust enrichment was not applicable in this case. The appellant was deemed entitled to the refund, and the appeal was allowed with consequential relief granted to the appellant. The Tribunal upheld the appellant's claim and ordered the refund to be provided accordingly.

This judgment highlights the importance of legal precedents, expert opinions, and relevant documentation in determining the applicability of legal doctrines such as unjust enrichment in matters of duty refunds and provisional assessments.