2007 (5) TMI 475 - AT - Customs

Summary

Issues involved: Refund of anti-dumping duty credited to Consumer Welfare Fund u/s 27(2) of Customs Act, 1962.

Refund Claim Rejected by Lower Authorities:
The appellant imported vitrified tiles from China, leading to a dispute on the levy of Anti Dumping Duty. The Settlement Commission settled the liability partially, and the appellant sought a refund for the excess amount paid. The lower authorities rejected the refund claim, citing lack of proof that the imported tiles were used for a project and insisting on crediting the refund to the Consumer Welfare Fund.

Appellant's Argument:
The appellant's consultant argued that the Chartered Accountant's certificate indicated the consumption of imported goods in the project, which was not challenged by the Revenue. Citing precedent from Camprihans India Ltd. case, it was contended that unjust enrichment should not impact the refund under Section 9A(2) of the Customs Tariff Act, 1975.

Revenue's Counter-Argument:
The Revenue contended that the Chartered Accountant's certificate lacked detail and that the appellant failed to provide sufficient documentation to support the refund claim. Relying on past tribunal decisions, it was argued that uniformity in price does not negate the passing on of duty burden.

Judgment and Legal Analysis:
The Tribunal examined the issue of refund of anti-dumping duty paid by the appellant for imported tiles. It was clarified that Section 27 does not apply to anti-dumping duty, which falls under Section 9A of the Customs Tariff Act, 1975. Refusal of refund based on unjust enrichment was deemed incorrect as per legal provisions. Citing the precedent from Caprihans India Ltd. case, the Tribunal emphasized that Section 9A provisions apply to excess payment of anti-dumping duty. Consequently, the appeal was allowed, directing the revenue to refund the amount to the appellant in accordance with the law.

Conclusion:
In line with the judgment of the Larger Bench, the Tribunal ruled in favor of the appellant, highlighting the specific application of Section 9A provisions to cases of excess anti-dumping duty payments.