Unjust enrichment and provisional assessment refunds before 25-06-1999 were held outside the amended refund restriction.

The amendment linking refunds on finalisation of provisional assessment to Section 11B through the proviso to Rule 9B(5) was held to operate only from 25-06-1999 and not retrospectively. Refunds relating to the period before that date are therefore not barred by unjust enrichment merely because finalisation occurred later, and the amount cannot be credited to the Consumer Welfare Fund on that basis. The stated result is that the issue is decided in favour of the assessee and against the Revenue.

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Issues: Whether the doctrine of unjust enrichment applies to refund arising from finalization of provisional assessment for a period prior to 25-06-1999 when the assessment was finalized after that date.

Analysis: The governing legal position was taken from the Larger Bench view that the amendment linking refund on finalization of provisional assessment to the procedure under Section 11B of the Central Excise Act, 1944, through the proviso to Rule 9B(5) of the Central Excise Rules, 1944, was operative only from 25-06-1999 and was not retrospective. On that reasoning, refunds relating to the period before 25-06-1999 are not hit by unjust enrichment merely because the assessment was finalized later. The amount cannot, therefore, be credited to the Consumer Welfare Fund on that basis.

Conclusion: The issue is decided in favour of the assessee and against the Revenue; unjust enrichment does not apply to the refund in question.

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