2005 (1) TMI 435 - AT - Central Excise

Summary

Issues: Classification of goods, refund denial, duty calculation for refund.

The judgment by Appellate Tribunal CESTAT, Mumbai, involved four appeals against a common order-in-appeal concerning the classification of goods. The dispute was settled in favor of the appellants, resulting in a lower duty rate of 15% ad valorem. However, the refund was denied on the basis that the extra duty burden had been passed on to customers. The impugned goods, waste and scrap, were sold inclusive of duties and taxes through bids. The tribunal held that the price charged should be considered as cum-duty-price, and if the duty amount paid exceeded the calculated amount, a refund of the balance duty should be allowed. This decision was supported by a previous ruling in the case of Cimmco Ltd. v. C.C.E., Jaipur, where it was established that a lump-sum price inclusive of all duties and taxes is deemed to cover those payable, and the extra duty burden was not transferred to the customer.

The tribunal set aside the lower authorities' orders and remanded the case to the original authority for the calculation and approval of the refund amount. This decision was based on the understanding that the duty amount should be determined from the price charged to customers, ensuring that any excess duty paid by the appellants is refunded. The ruling emphasized the importance of correctly interpreting the inclusive price of goods sold and ensuring that the duty burden is appropriately calculated to prevent passing it on to customers.