Provisional customs assessment refunds cannot be blocked by unjust enrichment where final assessment shows excess duty paid.

Refund arising from finalisation of provisional customs assessment is payable to the importer under Section 18(2) of the Customs Act, because excess duty adjusted on final assessment is treated as refundable in the same manner as under Rule 9B(5) of the Central Excise Rules. Applying the parallel reasoning recognised in excise law, such a refund is not defeated by the general refund restrictions in Section 27 or by the doctrine of unjust enrichment. The operative effect is that customs refund claims linked solely to provisional assessment finalisation are to be allowed in accordance with the statutory adjustment mechanism.

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Issues: Whether refund arising from finalisation of provisional assessment under the Customs Act could be denied by applying Section 27 and the doctrine of unjust enrichment.

Analysis: The refund claims arose only because the goods had been cleared on provisional assessment and were later adjusted on finalisation. Section 18(2) of the Customs Act, 1962 contemplates that excess duty paid on final assessment shall be refunded to the importer. The provision is treated as in pari materia with Rule 9B(5) of the Central Excise Rules, 1944, under which the Supreme Court had held that refund arising from adjustment on finalisation of provisional assessment is not governed by the refund restrictions in Section 11A and Section 11B of the Central Excise Act, 1944. On the same reasoning, the refund in customs matters consequent upon finalisation of provisional assessment is not to be defeated by invoking Section 27.

Conclusion: The refund could not be denied under Section 27 of the Customs Act, 1962, and the appellant was entitled to receive the refund.

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