Unjust enrichment in retrospective excise refund claims was remanded for fresh merits review after the prior basis was overruled.

A refund claim arising from a retrospective excise exemption was held not to be finally exempt from the bar of unjust enrichment because the Tribunal had relied on a Larger Bench view later overruled by the Supreme Court. That foundation could not sustain the earlier conclusion, so the finding was set aside and the matter remanded for fresh adjudication on merits. Both sides were given liberty to raise all contentions on the applicability of unjust enrichment to the refund claim.

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Issues: Whether the bar of unjust enrichment applied to the assessee's refund claim arising from the retrospective exemption under Section 2 of the Central Duties of Excise (Retrospective Exemption) Act, 1986.

Analysis: The Tribunal had held that unjust enrichment did not apply, but that view was founded on a Larger Bench decision which had since been overruled by the Supreme Court. In light of the later binding decision, the Tribunal's conclusion on unjust enrichment could not be sustained and the issue required reconsideration on merits. The matter was therefore sent back for fresh adjudication, with liberty to both sides to raise all contentions on the applicability of unjust enrichment to the refund claim.

Conclusion: The finding that the refund claim was exempt from the bar of unjust enrichment was set aside and the issue was remanded to the Tribunal for decision on merits.

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