2008 (3) TMI 704 - AT - Central Excise

Summary

Issues involved: Refund claim of redemption fine and penalties, application of doctrine of unjust enrichment.

Summary:
The appeals were directed against an order confirming additional Customs Duty liability, redemption fine, and penalty on imported Blank Video Cassettes. The Tribunal had earlier ruled in favor of the appellants, leading them to file a refund claim. The adjudicating authority rejected the claim, citing lack of evidence and time bar. The Ld. Commissioner (Appeals) upheld the rejection based on unjust enrichment. The appellant argued that unjust enrichment does not apply to redemption fine and penalties, as they were paid during the proceedings. The Ld. SDR contended that the doctrine of unjust enrichment applies to all refund claims. The Tribunal found that the appellants had succeeded in their appeal and that the rejection of the refund claim for redemption fine and penalty was incorrect based on precedent. Referring to a previous case, the Tribunal ordered the refund of redemption fine and penalty without delay, as the issue was the same. Consequently, the impugned orders were set aside, and the lower authorities were directed to refund the redemption fine and penalty to the appellant.