Provisional assessment refund is not barred by unjust enrichment when excess duty is returned on finalisation.

Refund arising from finalisation of provisional assessment under the Customs Act, 1962 is treated as part of a self-contained statutory process, and the excess duty becomes refundable on adjustment. Such refund stands on a different footing from an independent claim under Section 27, so the doctrine of unjust enrichment does not apply. As the refund flows directly from finalisation of the provisional assessment rather than from a fresh claim for return of duty, the assessee is entitled to the refund.

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Issues: Whether refund arising on finalisation of provisional assessment under the Customs Act, 1962 is governed by the bar of unjust enrichment.

Analysis: The refund arose from the finalisation of provisional assessment under Section 18 of the Customs Act, 1962. The statutory scheme treats provisional assessment and its final adjustment as a self-contained process, and the excess duty, if any, becomes refundable on finalisation. The Court applied the settled principle that a refund consequent upon adjustment under finalised provisional assessment stands on a different footing from an independent refund claim under Section 27 of the Customs Act, 1962. In such a case, the bar of unjust enrichment does not apply, because the refund flows directly from the statutory finalisation of the assessment and not from a fresh claim seeking return of duty already finally assessed.

Conclusion: Refund arising from finalisation of provisional assessment is not hit by the doctrine of unjust enrichment and the assessee was entitled to the refund.

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