Unjust enrichment bar remains under excise refund law even after duty is later repaid to the buyer.

Subsequent issue of credit notes or cheques to a buyer does not remove the statutory bar of unjust enrichment under Section 11B of the Central Excise Act, 1944 where excise duty had already been collected. The Tribunal applied its earlier view that repayment of the duty amount after collection does not defeat the doctrine of unjust enrichment for refund purposes. On that basis, the common issue in the connected appeals was resolved against the assessee and the Revenue's position was accepted.

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Issues: Whether issuance of credit notes or cheques by an assessee to the buyer, after collection of duty, removes the bar of unjust enrichment under Section 11B of the Central Excise Act, 1944.

Analysis: The issue had already been decided by the Tribunal to the effect that the doctrine of unjust enrichment applies even where the amount collected as excise duty is later returned to the buyer. Following that view, the common issue in the connected appeals was resolved against the assessee.

Conclusion: The return of the duty amount to the buyer by credit notes or cheques does not overcome the bar of unjust enrichment under Section 11B of the Central Excise Act, 1944.

Final Conclusion: The common order accepts the Revenue's position and disposes of the connected appeals accordingly.

Ratio Decidendi: Subsequent repayment of collected duty to the buyer does not defeat the statutory bar of unjust enrichment while seeking refund under Section 11B.

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