Principle of unjust enrichment not applicable to pre-deposit made under protest during pendency of the appeal

Last updated: 17 February 2021

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in The Daily Thanthi v. Commissioner of Customs (Appeals) [W.P.No.1879 of 2007 and M.P.Nos.1 of 2007 & 01 of 2008, decided on January 25, 2021] set aside the order passed by the Commissioner of Customs demanding documentary evidence to substantiate no unjust enrichment, and held that, the amount deposited during the pendency of the appeals before the Hon'ble Supreme Court has to be construed as having paid 'under protest' and has to be refunded without insisting on such importer or manufacturer satisfying the requirement of 'unjust enrichment' as in the case of pre deposit. Such amount has to be considered outside the purview of sting of 'unjust enrichment' in Section 27 of the Customs Act, 1962 ('Customs Act').

Citation :
W.P.No.1879 of 2007 and M.P.Nos.1 of 2007 & 01 of 2008, decided on January 25, 2021