Customs refund with interest upheld where excess duty remained unpaid back and unjust enrichment was not established.

Excess customs duty paid on import was held refundable under Section 27 of the Customs Act, 1962, and the refund order remained unimplemented. The departmental challenge did not disturb the finding that the assessee was entitled to refund, and the objection on unjust enrichment was rejected on the facts. The dispute being confined to interest, the appeal failed to unsettle the refund entitlement, and refund with interest was upheld as maintainable.

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Issues: Whether the departmental appeal against grant of refund and interest was sustainable, and whether the doctrine of unjust enrichment barred the refund claim.

Analysis: The refund claim arose from excess customs duty paid on import and was examined in the light of Section 27 of the Customs Act, 1962. The record showed that the refund issue had already been decided in favour of the assessee and that the refund order had not been implemented. The challenge was confined to the grant of interest, but the appeal did not dislodge the finding that the assessee was entitled to refund of the excess duty. The authority below had also held that unjust enrichment was not attracted on the facts.

Conclusion: The departmental appeal was rejected and the direction to grant refund with interest was upheld in favour of the assessee.

Final Conclusion: The refund claim was directed to be finalized in accordance with the appellate order, and the assessee remained entitled to the consequential refund and interest.

Ratio Decidendi: Where excess customs duty refundable under Section 27 of the Customs Act, 1962 has not been returned and the entitlement to refund stands affirmed, the departmental challenge limited to interest does not succeed, and the refund with interest is maintainable.

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