2008 (6) TMI 450 - AT - Central Excise

Summary

Issues involved: Claim of set-off of duty paid on Decalite, rejection of refund claim on grounds of unjust enrichment and non-submission of original gate passes, interpretation of remand order, requirement of documents for refund claim.

The appellants claimed set-off of duty paid on Decalite, initially disallowed by the Adjudicating Authority but later allowed by Commissioner (Appeals). Subsequently, a refund claim for the period from June 1984 to February 1986 was rejected by lower authorities. The Tribunal, New Delhi remanded the matter for verification of unjust enrichment u/s 11B of the Central Excise Act, stating that the appellants were entitled to cash refund. A reference application by Revenue was rejected, leading to a second rejection of the claim by the Adjudicating Authority on grounds of unjust enrichment and non-submission of original gate passes.

In the second round of adjudication, the Adjudicating Authority again rejected the claim citing unjust enrichment and absence of original gate passes. The Commissioner (Appeals) agreed that unjust enrichment did not apply but rejected the claim due to lack of documents showing duty payment on inputs and evidence of utilization in manufacturing final products specified under Notification No. 201/79.

During the hearing, the appellants' advocate highlighted details submitted with the refund claim and asserted that original documents were provided to the Department. Discrepancies arose regarding the evidence of actual quantity received. The Tribunal noted that the lower authorities had strayed from the remand order's direction on unjust enrichment, focusing instead on procedural issues. Considering the prolonged duration of the case, the Tribunal ruled in favor of the appellants, directing the refund amount be paid without requiring further documentation to prove procedural compliance.