2016 (3) TMI 606 - AT - Customs

Validity of order - Test of Unjust enrichment - Refund consisting differential fine and penalty - Held that - proviso to sub-section (2) of Section 27 of Customs Act, 1962 deals with applicability of test of unjust enrichment to the duty and interest element but not to differential fine or penalty. Therefore, the action of the authority below to deny the refund to the appellant to the extent indicated above on the ground that unjust enrichment shall apply to differential fine and penalty is not the sanction of the law. - Decided in favour of appellant

Summary

The Appellate Tribunal CESTAT CHENNAI allowed the appeal stating that the test of unjust enrichment does not apply to differential fine and penalty, as per the proviso to sub-section (2) of Section 27 of the Customs Act, 1962. The refund of Rs. 7,73,000 was sanctioned.