2009 (8) TMI 905 - AT - Central Excise

Summary

Issues involved: Appeal against rejection of refund claim as time-barred and on the ground of unjust enrichment.

Refund Claim Rejection: Appellant contended that due to a price variation clause in the contract, refund claims were filed after adjusting for reduced prices, supported by customer certificate and precedent cases. Revenue argued that duty element collection triggers unjust enrichment, citing Tribunal decisions and a High Court ruling. Appellant's limitation defense was based on non-provisional assessments.

Unjust Enrichment Principle: The central issue was whether the refund claim, filed within the limitation period, was affected by unjust enrichment principles. Goods were cleared at prevailing prices, with subsequent price reduction and issuance of credit notes. Appellant cited cases where customer refusal to pay original prices absolved unjust enrichment. However, the Tribunal found the present case distinct as duty was paid at clearance prices, assessments were not provisional, aligning with precedent decisions and High Court ruling.

Conclusion: The Tribunal upheld the rejection of the refund claim, emphasizing that duty realization without provisional assessments rendered the claim subject to unjust enrichment, despite later credit note issuance. The appeal was dismissed based on these findings.