2013 (2) TMI 680 - HC - Central Excise

Denial of refund claim - Unjust enrichment - Held that - in pursuance to the directions aforesaid the Deputy Commissioner, Central Excise & Service Tax Division, Bhilwara has re-considered the entire issue and has already passed a fresh order on 2-8-2012. In view of the statement so given by learned counsel for the respondent this appeal has become infructuous. - Decided against Revenue.

Summary

Issues:
Questioning correctness of judgment dated 2-5-2012 passed by Customs, Excise and Service Tax Appellate Tribunal in Excise Appeal No. 4981/2004 under Section 35G of the Central Excise Act, 1944.

Analysis:
The appeal was made to challenge the judgment of the Customs, Excise and Service Tax Appellate Tribunal, which had ordered a remand for a fresh examination regarding the issue of unjust enrichment. The Tribunal stated that if the appellant's records, including books of accounts and bank statements, demonstrated that despite paying extra duty, they had not received the extra duty from their customer, they would be considered as having borne the duty and thus eligible for a refund. The Tribunal referred to a judgment by the Hon'ble Madras High Court, emphasizing that whether the appellant's customer had recovered the full duty from their customer would not be relevant for the grant of refund. Consequently, the impugned order was set aside, and the matter was remanded to the original adjudicating authority for fresh adjudication following the Tribunal's directions.

The respondent, M/s. Bhilwara Processors Limited, informed the court that the Deputy Commissioner, Central Excise & Service Tax Division, Bhilwara, had already re-considered the issue and passed a fresh order on 2-8-2012 in compliance with the Tribunal's directions. A copy of the Deputy Commissioner's order was submitted to the court. Given this update, the appeal was deemed infructuous and subsequently dismissed.

In conclusion, the High Court dismissed the appeal as it had become infructuous following the re-consideration and fresh order passed by the Deputy Commissioner in compliance with the Tribunal's directions regarding the issue of unjust enrichment.