Section 27 of the Customs Act and the Doctrine of Unjust Enrichment Examined in Patanjali Foods Ltd. v. Union of India
In Patanjali Foods Ltd. v. Union of India, the Supreme Court held that encashment of a bank guarantee is not equivalent to payment of customs duty under Section 27. Therefore, the doctrine of unjust enrichment does not apply, and the government must refund amounts secured through such guarantees without demanding compliance with refund procedures.