2004 (7) TMI 468 - AT - Central Excise

Summary

Issues:
Applicability of principle of unjust enrichment to refund claim.

Analysis:
The appeal pertains to the applicability of the principle of unjust enrichment to a refund claim filed by the appellants against the impugned Order-in-appeal. The authorities below allowed the refund but directed its deposit in the Consumer Welfare Fund based on the said principle. Despite the absence of representation from the appellants, they sought a decision on merits. The learned JDR was heard, and the record was examined. The appellants claimed a refund of Rs. 35,046, asserting that they wrongly paid duty despite working under the SSI exemption. However, to claim duty refund under Section 11B of the Act, the assessee must demonstrate that the duty incidence was not passed on to the end consumer. The appellants failed to satisfy this condition as they could not prove that they did not pass on the duty incidence. Although they presented debit notes to show they bore the duty incidence, these were disregarded by the authorities as insufficient evidence. The Commissioner (Appeals) rightly dismissed the debit notes as an attempt to circumvent Section 11B and upheld the Order-in-Original by applying the principle of unjust enrichment. Consequently, the impugned order was upheld, finding no legal flaw, and the appeal was dismissed.