Unjust enrichment does not bar refund on provisional customs assessment made before 13 July 2006

Refund arising from provisional assessment made before 13-7-2006 was treated as outside the amended unjust enrichment bar under Section 18 of the Customs Act, 1962. The Tribunal applied the position that the principle of unjust enrichment was incorporated into Section 18 only from 13-7-2006, so the refund claim for the earlier provisional assessment was not tested on whether duty incidence had been passed on. On that basis, the refund was allowed.

---

---

Issues: Whether the bar of unjust enrichment applies to refund arising from provisional assessment under the Customs Act, 1962 for a period prior to 13-7-2006.

Analysis: The provisional assessment in the case was made well before July 2006. The Tribunal followed the ruling that the amendment to Section 18 of the Customs Act, 1962 incorporating the principle of unjust enrichment came into force only from 13-7-2006. On that legal position, the question whether the incidence of duty had been passed on was not examined further.

Conclusion: The bar of unjust enrichment was held not to apply to the refund claim arising from provisional assessment prior to 13-7-2006, and the appeal was allowed.

---