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2018 (7) TMI 1714 - AT - Central ExciseRefund claim - adjustment of Bank Guarantee with refund amount - unjust enrichment - Held that:- It is apparent that the amount of ₹ 3,23,195/- does not stand paid to Revenue and therefore, it needs to be adjusted against the admissible refund of ₹ 12,65,209/-. Consequently, the appellant are entitled to refund of an amount of ₹ 9,42,015/- as adjudged by original adjudicating authority. Principles of unjust enrichment - duty is secured against the bank guarantee - Held that:- The decision in the case of Saheli Synthetics Pvt. Limited vs. CC & CE, Surat [2001 (9) TMI 141 - CEGAT, MUMBAI] squarely covers the issue where it was held that bank guarantee furnished by an assessee in compliance with a Court order is in the form of a security or deposit and cannot be held as payment of duty attracting the provisions of unjust enrichment. Interest on refund amount - Held that:- As the appellant were liable to pay duty only on the job work charges. Subsequent proceedings in 1983 onwards, the appellant were required to pay duty not only on the job charges but also on the cost of material and consequently the amount deposited by them were a differential amount required to be deposited against the duty liability and thus it was not a case of pure refund - appellant is therefore, entitled for refund of ₹ 9,42,015/- along with interest as prescribed under the Act. However, while granting the said interest, the interest for the period for which the entire amount was refunded to them in 1983, and 75% of which was recovered from them in 1990, needs to be adjusted. Appeal allowed in part.
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