Unjust enrichment does not bar refund of duty on free physician's samples where no cost is passed on.

Refund of excess central excise duty paid on physician's samples distributed free of cost was held not to be barred by unjust enrichment, because the duty element was not recovered from buyers and therefore could not be treated as passed on. The Tribunal treated the dispute as limited to the unjust enrichment objection, with refund admissibility on merits not in issue, and followed prior decisions that free physician or clinical samples fall outside the unjust enrichment bar. The impugned orders were set aside.

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Issues: Whether refund of excess central excise duty paid on physician's samples distributed free of cost was barred by unjust enrichment.

Analysis: The refund claim arose from duty paid on physician's samples that were cleared for free distribution. The dispute was confined to the objection of unjust enrichment, since admissibility of refund on merits was not in issue. The Tribunal noted that where the samples are distributed without charge, the cost is not recovered from buyers and the duty element cannot be said to have been passed on. The issue was treated as covered by prior decisions holding that unjust enrichment does not apply to free physician or clinical samples.

Conclusion: The bar of unjust enrichment did not apply, and the impugned orders were set aside.

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