Provision of unjust enrichment not applicable in case of inadvertent excess payment of interest - It is in the nature of deposit and not as Duty

Last updated: 19 February 2016

Court :
CESTAT, Mumbai

Brief :
The Hon’ble CESTAT, Mumbai relying upon the case of Commissioner of Customs, Cochin Vs. Rajesh Chemicals – [2006 (196) E.L.T. 64 (Tri-Bang)], held that the provision of unjust enrichment wouldn’t be applicable as the excess amount paid by mistake was in the nature of deposit and not duty. It was further held that the Chartered Accountant’s certificate produced by the Appellant showing excess paid interest not passed on and said amount stands recoverable in the Books of Account of the Appellant, proves unjust enrichment even though the test of unjust enrichment was not applicable in the instant case.

Citation :
Wind World India Ltd. Vs. Commissioner of Customs (IMP.), Mumbai-II