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2008 (7) TMI 670 - AT - Central Excise
Issues:
Refund of duty amount transferred to Consumer Welfare Fund on the ground of unjust enrichment. Analysis: The appeal was directed against an Order-in-Appeal, where a show cause notice was issued to the appellant for treating the activity of assembling kitchen cabinets as manufacture. The duty demand was confirmed, a redemption fine was imposed, and the appellant moved to the Tribunal. The Tribunal allowed the appeal, leading to a refund claim by the appellant, which was transferred to the Consumer Welfare Fund due to unjust enrichment. The appellant contested the non-sanctioning of the refund by lower authorities. The appellant argued that the duty amount was paid during proceedings, and the factory had been closed since 1997, eliminating the possibility of recovering the duty from customers. Legal judgments were cited to support the appellant's claim. The respondent contended that the burden of proof lay with the appellant to show they did not pass on the duty to buyers. The Tribunal found that the duty amount was paid in compliance with the law and that the appellant's success in the appeal indicated the duty was not paid under protest. The Tribunal noted the appellant's closure of business in 1997, which should have been considered by the lower authorities. Citing a High Court judgment, the Tribunal emphasized that the question of passing on duty to buyers is a factual matter. Another Tribunal decision supported the appellant's argument regarding depositing duty amounts. Based on these precedents, the Tribunal set aside the lower authorities' decision and directed the refund of the amount to the appellant. In conclusion, the Tribunal found in favor of the appellant, emphasizing compliance with deposit requirements, lack of evidence of passing on duty, and the closure of the appellant's business. Relying on legal precedents, the Tribunal allowed the appeal for the refund of the duty amount and directed the lower authorities to refund the sum to the appellant.
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