2009 (1) TMI 712 - AT - Customs

Summary

Issues:
Appeal against rejection of claim for refund of duty and interest on delayed refund based on unjust enrichment.

Analysis:
1. The appellants imported 'Star Aniseed' and declared values were enhanced for assessment, leading to payment of duty at the enhanced value. The Tribunal previously allowed their appeal directing re-assessment based on transaction value due to the nature of the product's pricing fluctuations.
2. The appellants claimed a refund of excess duty paid, providing evidence like sale bills, balance sheets, and a certificate from a Chartered Accountant. The Deputy Commissioner initially sanctioned the refund, but the Department appealed, leading to a remand and subsequent rejection of the refund claim by the Commissioner (Appeals).
3. The Commissioner (Appeals) rejected the refund claim on grounds like incomplete sales invoices, lack of separate duty quantum in memos, and peripheral arguments not conclusively proving non-passing of duty burden. The appellants argued they sold the goods at a loss due to market conditions and provided substantial evidence to support their claim.
4. The Tribunal held that when an assessee produces documentary evidence supported by audited books and balance sheets, showing refund as 'recoverable' from the Department, the claim is not hit by unjust enrichment. Previous Tribunal cases supported this view.
5. Another consignment of 'Star Aniseed' imported by the appellants at a different port also led to a refund claim, which was granted by the Assistant Commissioner, Nhava Sheva, without any appeal filed against it.
6. The Tribunal emphasized that Revenue cannot take a different stand in identical facts of the assessee's case, citing Supreme Court precedents. In this case, the impugned order upholding the rejection of the refund claim was set aside due to inconsistency in the Department's actions.
7. The Commissioner's decision on rejecting the claim for interest on the refund amount was not separately appealed by the appellants, and no prayer was made in the appeal memorandum, resulting in no orders passed on this issue.