2003 (11) TMI 506 - AT - Central Excise

Summary

Issues:
1. Denial of refund claims for supply of motor vehicle parts to Maruti Udyog Ltd.
2. Rejection of refund claims based on time-bar and unjust enrichment.

Analysis:
1. The grievance in the appeals was regarding the denial of refund claims by M/s. Susbros Limited for supplying motor vehicle parts to Maruti Udyog Ltd. The lower authorities rejected the claims partially due to being outside the normal time limit under Section 11B of the Central Excise Act, 1944. The appellants argued that since the supplies were made under long-term contracts with provisions for price revision, the duty paid should be treated as provisional. However, it was clarified that the normal time limit for refund applies unless the original duty payment was on provisional assessment. The legal position was established, citing a relevant case law [A. Infrastructure Ltd. v. C.C.E., Jaipur - 2000 (117) E.L.T. 583 (T)]. Consequently, the lower authorities were justified in determining that part of the refund claims exceeded the time limit.

2. The second issue pertained to unjust enrichment. The appellant contended that price and duty adjustments were common practice due to price variations, thus eliminating the question of unjust enrichment. Reference was made to a letter from Maruti Udyog Ltd. supporting this practice. However, it was clarified that specific refund claims cannot solely rely on such general practices. The requirement was that the claimed refund amount should not have been passed on to the buyer. The appellant was directed to present evidence regarding the passing on of duty amounts to the lower authorities for verification. Consequently, the eligibility of refund claims within the normal time limit needed to be reassessed based on the evidence provided by the appellant. The appeals were remanded to the original authority for a fresh decision, with a directive for the appellant to submit evidence within six weeks for reconsideration. The original authority was instructed to review the claims and issue orders within six weeks of receiving the evidence, thereby disposing of the appeals accordingly.