Bank Guarantee Encashment Not Duty Payment; Unjust Enrichment Doctrine Inapplicable

Patanjali Foods Limited Vs Union of India & Ors. (Supreme Court of India) Supreme Court held that arbitrary encashment of the bank guarantees cannot be treated as payment of duty or duty paid by a claimant. Thus, the doctrine of unjust enrichment or Section 27 of the Customs Act would not be applicable. Accordingly directed to refund amount covered by bank guarantee. Facts- The assessee imported certain quantity of crude degummed soyabean oil of edible grade in bulk at Jamnagar and filed bill of entry on 02.09.2002 seeking clearance of the imported goods for home consumption. Customs depar...