2003 (9) TMI 603 - AT - Customs

Summary

Issues:
1. Refund claim directed to Consumer Welfare Fund.
2. Failure to prove non-passing of duty incidence to consumer.
3. Rejection of balance sheet entries as evidence.
4. Applicability of doctrine of unjust enrichment.
5. Dismissal of appeal for lack of merit.

Issue 1: Refund claim directed to Consumer Welfare Fund

The appellants appealed against an order directing their refund claim to be deposited in the Consumer Welfare Fund. Despite notice, no one appeared on their behalf during the hearing. The Tribunal proceeded with the appeal and upheld the impugned order, affirming the decision to deposit the refund claim in the Consumer Welfare Fund.

Issue 2: Failure to prove non-passing of duty incidence to consumer

The appellants imported raw materials for captive consumption but failed to prove that the duty incidence was not passed on to the consumer. The Tribunal noted that the burden of proof was on the appellants, as per a Supreme Court judgment. The entries in the balance sheet were not accepted as evidence due to lack of corroboration and authentication. An advocate's affidavit regarding the entries was deemed insufficient, as the advocate lacked personal knowledge about the entries' correctness. The appellants did not provide any basis for the entries in their records, leading to a failure to discharge the burden of proof satisfactorily.

Issue 3: Rejection of balance sheet entries as evidence

The Tribunal rejected the balance sheet entries as a substantial piece of evidence due to lack of corroboration and authentication. The entries were not accepted as they were not supported by any other source and were not authenticated by the authorities. An advocate's affidavit regarding the entries was also deemed inadequate, as the advocate could not provide personal knowledge or credibility to the entries made by the appellants in their records.

Issue 4: Applicability of doctrine of unjust enrichment

The appellants' plea that the doctrine of unjust enrichment did not apply to their case was rejected by the authorities based on a Supreme Court judgment. The Tribunal upheld the rejection, citing the law laid down by the Supreme Court that the doctrine of unjust enrichment would apply even to pending cases. Therefore, the Tribunal found no illegality in the impugned order of the Commissioner (Appeals) and upheld the decision based on the precedent set by the Supreme Court.

Issue 5: Dismissal of appeal for lack of merit

Ultimately, the Tribunal dismissed the appeal of the appellants for lacking merit. The decision was based on the failure to prove the non-passing of duty incidence to the consumer, the rejection of balance sheet entries as evidence, and the applicability of the doctrine of unjust enrichment as established by the Supreme Court. The dismissal was a result of the overall failure to provide sufficient evidence and legal basis to support the appellants' case.