2008 (11) TMI 244 - AT - Customs

Refund sanctioned to the appellants on merits; however the amount of refund has been directed to be credited to the Consumer Welfare Fund - amendment to Section 18 of the Customs Act 1962 amended by incorporating relevant portion on unjust enrichment came into effect only from 13-7-2006 and not prior to that date. In this case the provisional assessment is well prior to July 2006. Hence without going further into the appellant s argument that they have not passed on the incidence of duty to their customers as the amount is shown as claim receivable from Customs on the legal question as to whether the bar of unjust enrichment is attracted prior to July 2006 in the case of provisional assessment we set aside the impugned order

Summary

The Appellate Tribunal CESTAT, Chennai allowed the appeal regarding a refund claim of Rs. 31,39,684/-, directing the amount to be credited to the Consumer Welfare Fund. The Tribunal ruled that the bar of unjust enrichment did not apply before July 2006 for provisional assessments, following a High Court decision.