Proforma invoice and unjust enrichment: differential duty cannot rest on an unaccepted invoice, and refund survives without excess collection.

A proforma invoice that is not accepted by the buyer and is not supported by any payment cannot, by itself, justify a demand for differential duty, because no amount over and above the transaction value was shown to have been collected. On the same facts, the doctrine of unjust enrichment does not apply where the respondent has not recovered any excess amount from the buyer. The result is that refund relief remains available when the record shows no excess collection and no basis for treating the proforma invoice as determinative of duty liability.

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Issues: (i) whether differential duty could be demanded on the basis of a proforma invoice; and (ii) whether the doctrine of unjust enrichment applied to the refund claim.

Issue (i): Whether differential duty could be demanded on the basis of a proforma invoice.

Analysis: The proforma invoices had no legal sanctity, were not accepted by the buyers, and no payment was made under them. In the absence of receipt of any amount over and above the transaction value, the proforma invoice could not form the basis for demanding differential duty.

Conclusion: Differential duty could not be demanded on the basis of the proforma invoice, and the finding was in favour of the assessee.

Issue (ii): Whether the doctrine of unjust enrichment applied to the refund claim.

Analysis: The respondents had not received any amount over and above the transaction value. Accordingly, the bar of unjust enrichment did not arise on the facts of the case.

Conclusion: The doctrine of unjust enrichment was not applicable, and the refund was payable to the assessee.

Final Conclusion: The Revenue's challenge failed on both issues, and the refund relief granted to the respondents was sustained.

Ratio Decidendi: A proforma invoice that is not accepted by the buyer and is not accompanied by any payment cannot, by itself, justify demand of differential duty, and unjust enrichment does not arise where no amount has been collected over and above the transaction value.

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