2009 (5) TMI 753 - AT - Central Excise

Summary

Issues involved: Appeal against rejection of refund claim for excess duty paid on clearances of CTD bars without payment of duty in April 2000.

Summary:
The appeal was filed by M/s. V.D.S.R. Rolling Mills, Thiruvanamalai (VDSR) regarding the duty liability on clearances of CTD bars made in April 2000 under the compounded levy scheme. The appellants did not pay duty due at the rate of 16% ad valorem on these clearances, resulting in an excess payment of Rs. 58,053. The dispute arose as the appellants were not initially aware of the duty liability on the CTD bars cleared and the availability of deemed credit on the MS Ingots in stock. Upon realizing the correct legal position, they paid the duty and filed a refund claim for the excess amount paid.

Upon hearing both sides, it was established that the duty liability on the clearances was Rs. 3,62,833, and the appellants had paid an excess amount of Rs. 58,053. As the duty amount was paid subsequent to the clearances, the refund claim did not attract unjust enrichment. Therefore, the Appellate Tribunal held that the appellants were entitled to the refund of Rs. 58,053. The impugned order rejecting the refund claim was vacated as not sustainable in law, and the appeal filed by M/s. V.D.S.R. Rolling Mills was allowed with consequential relief.

The operative portion of the order was pronounced in open court on 28-5-2009.