2007 (8) TMI 250 - HC - Customs

Court orders revalidation of DEPB license, prevents unjust enrichment, assesses liability transfer. Petitioner to act promptly.

The Court directed the respondents to revalidate the license to the extent of the debit entry made in the Duty Entitlement Pass Book (DEPB) script, ... Refund - whether the amount of refund or licence can be renewed or fresh licence can be issued, when the payment of duty has not been made in cash and only debit entry has been made in DEPB Script – respondents are directed to re-validate the licence to the extent he has made debit entry in DEPB script – but matter will be examined by authority whether on revalidating the licence, can there be a case of unjust enrichment – authority is directed to pass appropriate order in accordance with law Issues:1. Delay in refund payment and issuance of fresh license or revalidation of existing license in lieu of debit entry in DEPB script.Analysis:1. The Tribunal's order dated 13.06.2003 established that a refund was due, but there was a delay in the process. The main issue was whether a fresh license could be issued or the existing license could be revalidated in place of the debit entry in the Duty Entitlement Pass Book (DEPB) script.2. On 22.08.2007, the respondent's counsel was directed to seek instructions on whether, in cases where duty payment was not made in cash but only through a debit entry in the DEPB script, a fresh license could be issued or the existing license could be revalidated to that extent. The Department's counsel confirmed that, as a special case, the license could be revalidated. However, concerns were raised about the possibility of unjust enrichment through this revalidation process.3. The Court directed the respondents to revalidate the license to the extent of the debit entry made in the DEPB script. It was emphasized that the authority should examine whether there could be unjust enrichment if the petitioner had transferred their liability to a third party. The authority was instructed to make a decision on revalidation based on this examination and in accordance with the law.4. The petitioner was instructed to approach the respondent authority within two weeks for the purpose of revalidation. The authority was directed to make a decision within two months from the date of the approach regarding the revalidation of the license.5. The petition was disposed of accordingly, with the resolution of the issue regarding the delay in refund payment and the process for revalidation of the license based on the debit entry in the DEPB script.