Duty-inclusive sale price governs excise computation; excess duty paid after clearance was refundable and not hit by unjust enrichment.

Where excisable goods are cleared and sold without prior duty payment, the realised sale price must be treated as inclusive of duty for computing the duty liability. On that basis, the duty payable may be lower than the amount later discharged, creating an excess payment. Refund of that excess duty is not barred by unjust enrichment where the entire duty was paid only after clearance and the excess was not recovered from buyers. The document states that the assessee was entitled to refund of the excess excise duty paid on CTD bars.

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Issues: Whether the assessee was entitled to refund of excess excise duty paid on clearances of CTD bars by treating the sale price as inclusive of duty and whether such refund was barred by unjust enrichment.

Analysis: The clearances were made without payment of duty and the assessee later discharged duty on the sale proceeds treating the realised price as the assessable value. Where excisable goods are cleared and sold without payment of duty, the price realised is to be taken as inclusive of the duty element and the duty payable must be worked out on that basis. On that computation, the duty liability was lower than the amount actually paid, leaving an excess payment. Since the entire duty was paid only after the clearances, refund of the excess amount did not attract unjust enrichment.

Conclusion: The assessee was entitled to refund of the excess duty paid.

Ratio Decidendi: When excisable goods are sold without payment of duty, the realised sale price must be treated as duty-inclusive for computing the tax liability, and refund of excess duty paid after clearance is not hit by unjust enrichment.

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