Refund of duty paid under protest is not barred by unjust enrichment when binding precedent remains unreversed.

Refund of excise duty paid under protest could not be denied on the ground of unjust enrichment where the binding precedent on the underlying manufacture issue remained applicable and had not been reversed by a Larger Bench. The Tribunal relied on Sinkhai Synthetics & Chemicals Pvt. Ltd. and held that the later reference order in Allied Photographics India Ltd. did not override that authority. On that basis, the refund claim was not barred by unjust enrichment and the assessee's refund was sustained.

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Issues: Whether refund of excise duty paid under protest was barred by the doctrine of unjust enrichment.

Analysis: The dispute concerned refund of duty paid under protest after the assessee succeeded on the question whether the metallising and lacquering process amounted to manufacture. The later Supreme Court decision in Sinkhai Synthetics & Chemicals Pvt. Ltd. was treated as binding, and the subsequent reference order in Allied Photographics India Ltd. did not amount to a reversal by a Larger Bench. On that footing, the Tribunal held that when duty is paid under protest, the refund claim cannot be denied merely by applying unjust enrichment in the manner urged by the Revenue.

Conclusion: The refund claim was not hit by unjust enrichment and was allowed in favour of the assessee.

Final Conclusion: The impugned order was set aside and the assessee's refund claim was sustained.

Ratio Decidendi: A refund claim for duty paid under protest cannot be denied on the ground of unjust enrichment where the binding precedent applicable on the issue holds otherwise and has not been reversed by a Larger Bench.

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