CIR NO.765/81/2003-CX, DT. 10/12/2003

Application of the doctrine of unjust enrichment to provisional assessment cases

Please refer to Board’s Circular No. 744/60/2003-CX dated 11.09.2003, whereby it was informed that Department’s appeal on the above issue, in the case of T.V.S. Suzuki Ltd., has been dismissed by the Hon’ble Supreme Court vide their judgement dated 06.08.2003 [reported in 2003 (156) ELT 161 (SC)] and that the said judgment has been accepted by the Board.

Subsequent to the above, in Civil Appeal No. 2687/2001 in the case of CCE, Mumbai vs. M/s Allied Photographics India Ltd., vide order dated 13.11.2003, a two judge bench of the Hon’ble Supreme Court has expressed the view that the three judges bench decisions in the case of CCE, Chennai vs. T.V.S.Suzuki Ltd. [2003 (156) ELT 161] and Sinkhai Synthetics & Chemicals Pvt. Ltd. vs. CCE, Aurangabad [2202 (143) ELT 17] are against the law as laid down by the 9 judges ;bench in the case of Mafatlal Industries Ltd. vs. Union of India [1997 (89) ELT 247] and has referred the matter to a larger Bench. A copy of the said order dated 13.11.2003 of the Hon’le Supreme Court is enclosed.*

You are requested to bring this development to the notice of all the field formations under your charge for necessary action at their end and advise them to keep the pending matters on the issue pending in the Call book, till the decision of the Hon’ble Supreme Court.

Sd/-
(B.K. Gupta)
Joint Secretary (Review)

F.No. 387/231/99-JC

(Please refer CIR NO.794/27/2004-CX, DT. 23/06/2004 - Application of the doctrine of unjust enrichment to cases of provisional assessment and payment of duty paid under protests)

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