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February 2013

Payment of duty made under protest during investigation – To be considered as ‘deposit’ and not duty – Principle of unjust enrichment not applicable.

By Puloma Dalal, Bakul B. Mody, Chartered Accountants
Reading Time 1 mins
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Facts:

Appellant paid duty under protest during the investigation and later, it was held that it was not dutiable. Revenue asked to prove there was no unjust enrichment. It was a case of refund of ‘deposit’ and not of ‘duty’ as per the appellant wherein the principle of unjust enrichment was not applicable.

Held:

The Department did not bring anything on the record that the appellant had passed on the incidence of the duty. Further, the amount was paid under protest. Therefore, the same was in the nature of ‘deposit’ and not ‘duty’.

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