UNION OF INDIA vs SOLAR PESTICIDE PVT. LTD.

The Supreme Court addressed the applicability of the doctrine of unjust enrichment concerning additional customs duty under Section 27 of the Customs Act, 1962. The Court held that unjust enrichment does not apply when raw materials are consumed in manufacturing a final product, as opposed to when goods are sold and the duty burden is passed on to the buyer. The Court upheld the High Court's decision that the respondent was entitled to a refund of the additional customs duty paid, as the burden of proof regarding passing on the duty was not met by the customs authorities.