2003 (11) TMI 477 - AT - Central Excise

Summary

Issues:
Claim for refund of central excise duty on automobile parts due to retrospective price reduction by buyer.

Analysis:
The case involves a manufacturer of automobile parts seeking a refund of central excise duty paid on parts sold to a buyer who retrospectively reduced prices. The appellant contended that duty was paid based on reduced prices set by the buyer, leading to a refund claim rejected by Central Excise authorities citing lack of evidence that duty was not passed on. The impugned order highlighted the absence of proof that duty incidence was not transferred to the ultimate consumer, emphasizing the need to establish that the duty was not passed on beyond the buyer.

The appellant argued that the focus should be on whether the manufacturer passed on the duty to the buyer, not on subsequent stages of trade. Evidence presented showed that the buyer paid duty based on reduced prices, not the original invoiced amounts. Upon review, the Tribunal agreed with the appellant's position, emphasizing that the crucial consideration is whether the manufacturer passed on the duty liability to the buyer. The records indicated that the appellant did not transfer the full duty amount paid initially, justifying the refund claim. The Tribunal overturned the lower authorities' decision, ruling in favor of the appellant and allowing the appeal with appropriate relief if necessary.