Provisional assessment refunds before 25-6-1999 are governed by Rule 9B, and unjust enrichment cannot bar recovery.

Refund arising from finalisation of provisional assessments for the period before 25-6-1999 is governed by Rule 9B of the Central Excise Rules, 1944, not by Section 11B of the Central Excise Act, 1944. On that basis, excess duty refundable on finalisation had to be paid to the assessee without applying the unjust enrichment bar, and the authorities erred in treating the refund as erroneous or recoverable. The result is that the refund remained lawful and recovery of the refunded amount was unsustainable.

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Issues: Whether refund arising on finalisation of provisional assessments for the period prior to 25-6-1999 was governed by Section 11B of the Central Excise Act, 1944 and could be denied or recovered on the ground of unjust enrichment, or was governed exclusively by Rule 9B of the Central Excise Rules, 1944.

Analysis: The refund in question arose from finalisation of provisional assessments relating to a period prior to 25-6-1999. For such cases, refund of excess duty payable on finalisation was required to be made to the assessee without reference to Section 11B of the Central Excise Act, 1944. The controlling provision was Rule 9B of the Central Excise Rules, 1944, and the authorities below erred in treating the refund as erroneous and in invoking unjust enrichment to recover the amount.

Conclusion: The refund was lawful, and the demand raised for recovery of the refunded amount was unsustainable, in favour of the assessee.

Ratio Decidendi: Refund arising from finalisation of provisional assessment for the pre-25-6-1999 period is governed by Rule 9B of the Central Excise Rules, 1944 and not by Section 11B of the Central Excise Act, 1944, and cannot be denied or recovered on the basis of unjust enrichment.

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