Commissioner Of Central Excise, ... vs Usha Beltron Ltd.

The Supreme Court held that the doctrine of unjust enrichment under Section 27 of the Customs Act is applicable to imported raw materials that are consumed in the manufacture of final products. The Court found that the earlier judgment of the Bombay High Court in Solar Pesticides (India) Limited v. Union of India was not applicable in this context. Consequently, the appeal was allowed, the impugned Tribunal order was set aside, and the matter was remanded to the Tribunal for consideration of whether the incidence of duty had been passed on to the consumer.