COMMNR. OF CENTRAL EXCISE, CHENNAI vs M/S. GRASIM INDUSTRIES

The Supreme Court addressed the applicability of the doctrine of unjust enrichment concerning the refund of excise duty paid on capital goods under Notification No.78/1990-CE. The Court held that the doctrine does not apply when the goods are used captively, thereby allowing Grasim Industries to claim a refund of Rs.27,66,970/- paid at the normal rate of 15% instead of the concessional rate of 5%. The judgment distinguished the precedent set in Union of India vs. Solar Pesticides Pvt. Ltd., affirming that the facts of that case did not pertain to capital goods used captively.