https://www.taxtmi.com/caselaws?id=771756 SC ruled that encashment of bank guarantees furnished as security for differential customs duty cannot be treated as payment of duty under Section 27 of the Customs Act. The revenue authorities arbitrarily encashed bank guarantees instead of awaiting court decision or directing renewal. Since no actual duty payment occurred, doctrine of unjust enrichment and Section 27 provisions were inapplicable. SC set aside HC judgment, directing immediate refund of encashed amounts with 6% interest from encashment date, payable within four months. en-us Mon, 19 May 2025 00:00:00 +0530 Fri, 30 May 2025 08:55:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771756 SC ruled that encashment of bank guarantees furnished as security for differential customs duty cannot be treated as payment of duty under Section 27 of the Customs Act. The revenue authorities arbitrarily encashed bank guarantees instead of awaiting court decision or directing renewal. Since no actual duty payment occurred, doctrine of unjust enrichment and Section 27 provisions were inapplicable. SC set aside HC judgment, directing immediate refund of encashed amounts with 6% interest from encashment date, payable within four months. Case-Laws Customs Mon, 19 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771756