2008 (10) TMI 562 - AT - Central Excise

Summary

Issues involved: Dispute regarding availment of exemption under SSI notification, unjust enrichment in refund claim.

Issue 1: Availment of benefit of exemption under SSI notification

- The respondents were engaged in manufacturing articles of Paper and Paper Boards and pharmaceutical products.
- Show cause notices were issued proposing denial of exemption benefit due to the use of brand names of other persons.
- Order passed by Deputy Commissioner against the appellant upheld by Commissioner (Appeals).
- Assessee directed to file revised declaration and start paying duty during proceedings.
- Tribunal held that the assessee was entitled to the benefit of SSI notification.
- Refund claim of Rs. 1,44,472/- filed by the respondent was initially rejected on grounds of unjust enrichment.
- Commissioner (Appeals) ruled in favor of the respondent, leading to the present appeal.

Issue 2: Unjust enrichment in refund claim

- Respondent contended that they did not collect excise duty portion shown in invoices during the relevant period.
- Assessee informed the Revenue that duty paid was under protest and not received from customers.
- The duty paid under protest was considered as an additional cost by the appellants.
- Commissioner (Appeals) accepted the appeal, emphasizing that the duty burden was not passed on to customers.
- Revenue argued that uniformity in invoice prices is not conclusive proof of non-passing of duty burden.
- Commissioner (Appeals) based decision not only on price uniformity but also on appellant's letter informing non-collection of duty from customers.
- Balance sheet and other evidence supported the finding that duty incidence was not passed on to customers.
- Revenue's appeal was rejected as no merit was found in their arguments.

Separate Judgment:
- The judgment was pronounced in Court on 8-10-2008 by Ms. Archana Wadhwa, Member (J).