Exemption notification benefit preserved despite departmental delay, and refund upheld as not barred by unjust enrichment.

Entitlement to exemption under Notification No. 6/2000 was held unaffected by departmental delay in granting permission where the goods were received on duty payment and were used in manufacture of original equipment; the assessee could not be denied the benefit for Revenue's delay. The refund claim was also held not to be hit by unjust enrichment, as the assessee produced a Chartered Accountant's certificate and there was no proper basis to reject it. On those facts, refund of the duty paid was allowed with consequential relief.

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Issues: (i) Whether the assessee was entitled to the benefit of Notification No. 6/2000 dated 1-3-2000 despite delay in grant of permission by the department; (ii) Whether the refund claim was barred by unjust enrichment.

Issue (i): Whether the assessee was entitled to the benefit of Notification No. 6/2000 dated 1-3-2000 despite delay in grant of permission by the department.

Analysis: The entitlement to the notification benefit was held to be unaffected by the delay attributable to the department in granting permission. The goods had been received on payment of duty and were shown to have been used in the manufacture of original equipment, and the assessee could not be penalised for the Revenue's delay in issuing permission.

Conclusion: The assessee was entitled to the benefit of the notification.

Issue (ii): Whether the refund claim was barred by unjust enrichment.

Analysis: The assessee produced a Chartered Accountant's certificate, and there was no proper basis to reject it. The Tribunal followed the earlier decision in the assessee's own case and held that unjust enrichment was not attracted on the facts.

Conclusion: The refund claim was not barred by unjust enrichment.

Final Conclusion: The assessee succeeded in establishing entitlement to refund of the duty paid, and the appeal was allowed with consequential relief.

Ratio Decidendi: Where departmental delay prevents timely grant of permission under an exemption notification, the assessee cannot be denied the benefit if the substantive conditions are met and the refund claim is otherwise not hit by unjust enrichment.

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