Cash refund of PLA balance allowed where duty was actually paid and unjust enrichment did not bar restitution.

Cash refund of the PLA balance was treated as permissible where accumulated credit had remained unutilised because departmental action prevented its use, and duty was later paid from the PLA when the goods again became dutiable. The amount credited back to the PLA pursuant to the High Court's order was regarded as the cash equivalent of duty actually paid, not as a refund of money credit under the old scheme, so the refund claim was maintainable. The doctrine of unjust enrichment was held not to bar the refund, and the claim was allowed in favour of the assessee.

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Issues: Whether the assessee was entitled to cash refund of the amount lying in the PLA, being the equivalent of duty paid after the assessee had earlier been prevented from utilising accumulated credit, and whether the doctrine of unjust enrichment barred such refund.

Analysis: The accumulated credit had remained unutilised because the departmental authorities prevented its utilisation, and the assessee later paid duty from the PLA when the goods again became dutiable. The amount subsequently credited back to the PLA pursuant to the High Court's order was therefore treated as the cash equivalent of duty actually paid, not as a cash refund of money credit under the old scheme. On that basis, refund of the unutilised PLA balance was held to be permissible. The finding that unjust enrichment did not apply was also accepted.

Conclusion: The cash refund claim was maintainable and was rightly allowed in favour of the assessee.

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