Since duty has been wrongly deposited in PLA of closed unit, bar of unjust enrichment does not apply
THE appellant was having two registered units, Unit no. 1 and Unit No. 2. Unit No. 2 was closed down and the registration certificate was surrendered on 19.06.2006. However, Unit No.1 continued to function.
On 22.12.2011, the appellant wrongly deposited an amount in the PLA of Unit No. 2. Realizing their mistake, they made a fresh deposit in the account of Unit No. 1 and filed a refund claim.
Both the lower authorities rejected their refund claim on the premise that the refund is hit by unjust enrichment.
The Bench observed -
"4. In this case, when a unit has been closed in the year 2006 and there is no activity going on, if any payment is made in that account, the question of bar of unjust enrichment does not arise at all. Both the lower authorities have not examined the provisions of law. They merely relied on the decision of Sahakarikhand Udyog Mandal Ltd. (). In fact, in this case the facts of Sahakarikhand Udyog Mandal Ltd. are not relevant at all. In the present case, the duty has been paid wrongly in the PLA of a closed down unit which was not required to be paid, therefore, bar of unjust enrichment is not applicable. In these terms, the impugned order is set aside and the appeal is allowed with consequential relief.
5. The adjudicating authority is directed to sanction the refund claim within 7 days of receipt of this order."
Hope the amount has been refunded by now.
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