Unjust enrichment does not bar SAD refund when documentary proof and a Chartered Accountant's certificate establish non-passing of duty.

Refund of special additional duty on imported goods sold in the domestic market was not barred by unjust enrichment where the assessee proved SAD payment, subsequent domestic sale, VAT payment, and compliance with the documentary conditions in Notification No. 102/2007-Cus. A Chartered Accountant's certificate, supported by sample invoices, was treated as sufficient evidence that the duty incidence had not been passed on and that no Cenvat credit had been taken. The detailed accounting scrutiny adopted below was found unnecessary in light of that proof. Refund was therefore held admissible, and the stay modification was allowed with waiver of pre-deposit.

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Issues: Whether refund of special additional duty on imported goods sold in the domestic market was barred by unjust enrichment, and whether the assessee was entitled to modification of the stay order by waiver of pre-deposit.

Analysis: The refund claims were filed under Notification No. 102/2007-Cus. on the basis that the imported goods had been sold after payment of VAT. The governing requirement was proof of payment of SAD, subsequent domestic sale, payment of VAT, and compliance with the unjust enrichment test under Section 11B. The Board's circular treated a Chartered Accountant's certificate as sufficient for establishing that the incidence of duty had not been passed on, and the sample invoices and certificate showed that SAD had not been recovered directly or indirectly and that no Cenvat credit had been taken. The detailed accounting analysis adopted in the impugned order was held unnecessary in the face of the documentary proof and the certificate.

Conclusion: The refund claims were held not to be hit by unjust enrichment, and the assessee was found entitled to refund. Pre-deposit was waived and the modification application was allowed.

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