2003 (3) TMI 645 - AT - Central Excise

Summary

Issues:
1. Refund claim rejected by lower authority.
2. Allegation of unjust enrichment.
3. Revenue's appeal against Order-in-Appeal No. 478/2003 (P) dated 16-9-2003.
4. Excess duty payment due to clerical error.
5. Correct duty payment while clearing goods to M/s. Singer India Ltd.
6. Verification of accounts and documentary evidence.
7. Commissioner (Appeals) decision in favor of respondents.

Analysis:
1. The case involves a dispute over a refund claim rejected by the lower authority. The respondents, who manufacture washing machines, declared an MRP of Rs. 8,650 per piece for the machines sold to M/s. Singer India Ltd. The assessable value for duty payment was Rs. 5,190 after abatement. Due to a clerical mistake, there was excess duty payment in one period and short payment in another. The respondents applied for a refund of Rs. 2,55,591 for the excess payment.

2. The main contention was the allegation of unjust enrichment. The Commissioner (Appeals) found that the excess excise duty was not passed on to M/s. Singer India Ltd. as confirmed by the invoices and payment advice. The Commissioner emphasized the need for verification of accounts of both the seller and the purchaser to establish unjust enrichment. The Commissioner's decision favored the respondents, stating there was no unjust enrichment.

3. The Revenue appealed against the Commissioner (Appeals) order, arguing that a mere verification of payment details was not sufficient to establish unjust enrichment. They contended that a detailed examination of accounts and a firm declaration by the purchaser were necessary. The Revenue disputed the lack of such verification by the Commissioner (Appeals).

4. During the hearing, the Revenue's representative reiterated the grounds of appeal, while the respondents' counsel emphasized that the excess duty erroneously paid was not passed on to M/s. Singer India Ltd. The Chartered Accountant's verification supported this claim, showing that the correct duty was paid when clearing goods to the buyer.

5. The Tribunal examined the records and found that the Commissioner (Appeals) had thoroughly reviewed the issue. It was clarified that the excess duty payment occurred during stock transfer due to a clerical error, but the correct duty was paid when clearing goods to M/s. Singer India Ltd. The Chartered Accountant's verification and relevant records supported the respondents' contentions, leading to the rejection of the Revenue's appeal.

6. In conclusion, the Tribunal upheld the Commissioner (Appeals) decision in favor of the respondents, stating that the excess duty erroneously paid had not been passed on to the buyer. The verification of accounts and documentary evidence supported this finding, leading to the rejection of the Revenue's appeal.