2007 (5) TMI 463 - AT - Central Excise

Summary

Issues involved: Refunds on account of provisional assessment u/s Rule 9B(5) of the Central Excise Rules, 1944; Applicability of unjust enrichment; Deductibility of interest on sundry debtors in the assessable value of goods sold.

Refunds on account of provisional assessment: The appeals dealt with refunds arising from provisional assessment, with lower authorities rejecting the claims post the amendment to Rule 9B(5) of the Central Excise Rules, 1944. The Tribunal noted that for cases pre-dating the amendment, the provisions of unjust enrichment would not apply, citing legal precedents including CCE, Chennai v. TVS Suzuki Ltd. The Tribunal allowed the appeals E/576/2005 and E/577/2005 in full, while partially allowing E/579/2005 by excluding the refund amount post the amendment.

Deductibility of interest on sundry debtors: In Appeal No. E/387/2005, the appellants argued for the deductibility of interest on sundry debtors in the assessable value of goods sold. The Tribunal found that interest on receivables is not liable to be included in the assessable value, referencing legal decisions such as CCE v. Novapan Industries Ltd. Since the period involved predated the amendment, the provisions of unjust enrichment were deemed inapplicable. Consequently, the Tribunal allowed Appeal No. E/387/2005.

Separate Judgement: The Tribunal highlighted that the lower authorities cannot exceed the directions of a remand order, as seen in cases like Eon Polymers v. CCE. The Tribunal emphasized that interest on receivables is not to be included in the assessable value, supporting the appellants' claim for deductibility.