2009 (9) TMI 968 - AT - Customs

Summary

Issues involved: Appeal against refund claim, classification of imported goods, unjust enrichment in refund claim.

Classification of imported goods: The case involved the importation of reconditioned mainframes of photocopiers, which were found to be old and used, with essential features of photocopiers but not constituting a full photocopier. The main issue was whether these imported mainframes should be classified as photocopiers attracting duty at 40% instead of 25%.

Appeal against refund claim: The importers filed a refund claim following a CESTAT order that allowed the appeal on grounds related to import control, classification, and valuation. The adjudicating authority sanctioned the refund claim but raised the issue of unjust enrichment, stating that the amount should be credited to the Consumer Welfare Fund. The respondent appealed, arguing that the sale price of the goods did not have a relationship with the duty, fine, and penalty costs, thus unjust enrichment did not apply.

Unjust enrichment in refund claim: The Revenue contended that the Tribunal had previously held that unjust enrichment would apply in the case and that the Commissioner (Appeals) erred in not considering this aspect properly. The Revenue sought a remand back to the original adjudicating authority for a fresh decision. However, the respondent argued that unjust enrichment did not apply to redemption fine and penalty, citing a High Court order in a similar case.

Judgment: After considering the arguments, the Tribunal noted that the doctrine of unjust enrichment did not apply to redemption fine and penalty based on a High Court ruling. The matter was remanded back to the original adjudicating authority for a fresh decision specifically on the duty aspect, not on redemption fine and penalty. The appeal was disposed of accordingly.