2001 (8) TMI 849 - AT - Customs

Summary

Issues Involved: The applicability of the doctrine of unjust enrichment against the grant of refund in customs matters.

Summary:
The Appellate Tribunal CEGAT, Chennai considered nine appeals from two importers regarding the applicability of the doctrine of unjust enrichment against the grant of refund. The matter was remanded by CEGAT for reconsideration of the issue in accordance with law. The Commissioner observed that the evidence presented was inadequate to prove that the duty burden had not been passed on to customers. The importers argued that they had incurred losses greater than the duty amount, showing that the duty burden had not been passed on. They cited a High Court judgment to support their position. The Department reiterated the Commissioner's findings but failed to rebut the importers' claim that the duty burden had not been passed on. The Tribunal found in favor of the importers, noting that they had provided sufficient evidence to show that the duty burden had not been passed on to customers, as per previous court judgments. The impugned order was set aside, and the appeals were allowed.

In conclusion, the Tribunal ruled in favor of the importers, holding that the duty burden had not been passed on to customers based on the evidence presented, overturning the Commissioner's decision. The importers successfully rebutted the presumption that the duty burden had been passed on, as supported by relevant legal precedents.