Unjust enrichment and refund of duty on tsunami relief clearances under ad hoc exemption orders were accepted.

Refund of duty paid on clearances made under ad hoc exemption orders for tsunami victims was held not to be barred by unjust enrichment. Because the goods were supplied for relief purposes and the assessee was treated as an instrumentality of the State, it could not be said to have benefited at the expense of the public. The exemption orders' object supported refund, and the Revenue was not entitled to retain the duty on unjust enrichment grounds. The refund claim was therefore maintainable and allowed to the extent unpaid.

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Issues: Whether refund of duty paid on clearances made for tsunami victims under ad hoc exemption orders could be denied on the ground of unjust enrichment.

Analysis: The goods were cleared for supply to tsunami victims pursuant to ad hoc exemption orders, and the appellant was held to be an instrumentality of the State. In such circumstances, the appellant was not to be treated as having enriched itself at the expense of the public, and the purpose of the exemption orders supported grant of refund. The amount already paid was therefore not to be retained by the Revenue on the ground of unjust enrichment.

Conclusion: The refund claim was maintainable and was allowed to the extent it remained unpaid, in favour of the assessee.

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