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Issues involved: Refund of duty, unjust enrichment, challenge to assessment order.
Refund of duty: The importers filed refund claims after paying duty under protest for goods imported under free warranty replacement. The claims were initially sanctioned but later found to be hit by unjust enrichment, leading to the amounts being directed to the Consumer Welfare Fund. The importers contended that they had not passed on the duty burden to customers and provided evidence to support their claim. The Commissioner (Appeals) rejected the refund claims on the basis that the assessment orders had not been challenged, contrary to the importers' argument that paying duty under protest constituted a challenge to the assessment. Challenge to assessment order: The Tribunal noted precedents where payment of duty under protest was considered a challenge to the assessment order. Citing cases such as Commissioner of Customs, Bangalore v. Spice Communication and others, it was established that the act of paying duty under protest itself signifies a challenge to the assessment. The Tribunal found that the Commissioner (Appeals) erred in rejecting the appeals solely on the ground of non-challenge to the assessment order, without considering the importers' arguments and evidence. Consequently, the Tribunal set aside the impugned order and remanded the case for further consideration by the adjudicating authority, emphasizing the need to assess whether the duty burden had been passed on to customers and granting the importers a fair opportunity to present their case. Conclusion: The Tribunal allowed the appeals by way of remand, directing a reevaluation of the refund claims in light of the legal principles surrounding challenges to assessment orders and unjust enrichment, ensuring a fair hearing for the importers to establish their case and potentially receive the refunds they sought.
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