Requirement of “unjust enrichment” in case of pre deposit under section 129E of the Customs Act

Last updated: 24 February 2021

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Quick Summary

This case concerns a petitioner seeking a refund of Rs. 88,44,510 paid as a pre-deposit during an appeal to the Supreme Court. The petitioner argues that the refund should be granted with interest, as per a Supreme Court judgment. The core issue revolves around whether the principle of 'unjust enrichment' applies to such pre-deposits under Section 129E of the Customs Act.

Court :
Madras High Court

Brief :
This Writ Petition has been filed by the petitioner to direct the respondents to refund the amount of Rs.88,44,510/- paid by the petitionerduring the pendency of its appeal before the Hon'ble Supreme Court in C.A.Nos.3558 and 3559 of 2000 along with interest at 12% per annum from 31.03.2005 (i.e. date of Supreme Court Judgment) till the date of payment.

Citation :
Appeal Number : W.P. No.1879 of 2007

IN THE HIGH COURT OF JUDICATURE AT MADRAS

Reserved On 18.01.2020
Pronounced On 25.01.2021

CORAM

THE HON'BLE MR.JUSTICE C.SARAVANAN
W.P.No.1879 of 2007
and
M.P.Nos.1 of 2007 & 01 of 2008
(Through Video Conferencing)

The Daily Thanthi,
86, E.V.K.Sampath Road,
Chennai – 600 007.
Rep. by its General Manager,
Administration. ... Petitioner

Vs.

1.Commissioner of Customs (Appeals),
60, Rajaji Salai, Custom House,
Chennai – 600 001.

2.Assistant Commissioner of Customs,
Refunds, Custom House,
Chennai – 600 001. ... Respondents

Writ Petition filed under Article 226 of the Constitution of India, to
issue a Writ of Certiorarified Mandamus calling for the records of the first
respondent culminating in his Order-in-Appeal No.C.CUS.844/06 bearing

Ref.C3/659/R/2006-SEA dated 21.11.2006 and quash the same and direct
the respondents to refund of a sum of Rs.88,44,510/- along with interest @
12% per annum from 31.03.2005 (i.e. date of Supreme Court Judgment) till
the date of payment.

For Petitioner : Mr.S.Murugappan
For Respondents : Mrs.Apaarna Nandakumar, CGSC.

O R D E R

This Writ Petition has been filed by the petitioner to direct the respondents to refund the amount of Rs.88,44,510/- paid by the petitionerduring the pendency of its appeal before the Hon'ble Supreme Court in C.A.Nos.3558 and 3559 of 2000 along with interest at 12% per annum from 31.03.2005 (i.e. date of Supreme Court Judgment) till the date of payment.

2. The said appeal was filed against Final Order Nos.203-205 dated07.02.2005 passed by the Customs, Excise and Gold (Control) Appellate Tribunal, Chennai [CEGAT for brevity]. CEGAT which is now called as theCustoms, Excise and Service Tax Appellate Tribunal (CESTAT) had partly allowed and partly dismissed the petitioner’s appeals vide the aforesaid common order.

To know more in details find the attachment file

FAQ :

The main issue is whether the principle of 'unjust enrichment' prevents the refund of a pre-deposit made under Section 129E of the Customs Act, especially after a Supreme Court judgment.

The petitioner is seeking a refund of Rs. 88,44,510.

Section 129E of the Customs Act pertains to the requirement of pre-deposit during appeals.

The petitioner's original appeal was against Final Orders passed by the Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT), which had partly allowed and partly dismissed their appeals.

The petitioner is requesting interest at 12% per annum on the refunded amount from 31.03.2005 until the date of payment.