S.27 Customs Act Or Doctrine Of Unjust Enrichment Won't Apply To Refund Of Bank Guarantee : Supreme Court Allows Patanjali Plea

Supreme Court exempts bank guarantee refunds from unjust enrichment claims, allowing Patanjali’s customs duty plea. The Supreme Court has ruled that refunds arising from bank guarantees, particularly in cases involving customs duties collected coercively and later found illegal, are exempt from the doctrine of unjust enrichment. This decision was made while allowing a customs duty refund plea by Patanjali. The ruling is significant as it prevents the tax department from retaining funds that were unlawfully collected, ensuring that companies can reclaim amounts paid under protest without facing the "unjust enrichment" defense from the authorities.