2011 (8) TMI 425 - AT - Customs

Refund of Special Additional Duty (SAD) - unjust enrichment - Import of soda ash - 2400 MTs of soda ash cleared for home consumption - During the hearing, verification report from the Additional Commissioner was placed before the Bench by ld. SDR which would show that landed cost for 2400 MTs was less than Rs.7928/- while the assessees have sold at Rs.8000/- per MT - This, therefore, would clearly show that the assessees are correct in their submission that they have not passed on incidence of duty to their customers - Decided in favour of assessee.

Summary

Issues: Refund of Special Additional Duty (SAD) paid on imported soda ash.

Issue: Eligibility for Refund of SAD
The appeal concerned the claim of the assessees for a refund of Special Additional Duty (SAD) paid on imported soda ash. The Commissioner of Central Excise (Appeals) had remitted the claim to the lower authority for the production of relevant documents. The Vice-President noted that the assessees had cleared 2400 MTs of soda ash for home consumption, with a landed cost lower than the selling price. The Vice-President found that the assessees had not passed on the duty incidence to their customers, as evidenced by the amount claimed as "Advance Receivable" in their Balance Sheet. This led to the conclusion that the assessees were eligible for a refund, as they were not impacted by the doctrine of unjust enrichment. Consequently, the Vice-President set aside the impugned order and allowed the appeal.

Conclusion
The judgment by the Appellate Tribunal CESTAT, CHENNAI, delivered by the Hon'ble Ms. JYOTI BALASUNDARAM, Vice-President, addressed the issue of the eligibility for a refund of Special Additional Duty (SAD) paid on imported soda ash. The Vice-President's analysis focused on the assessees' failure to pass on the duty incidence to their customers, as demonstrated by the discrepancy between the landed cost and selling price of the soda ash. This discrepancy, coupled with the indication in the Balance Sheet, led to the finding that the assessees were entitled to the refund and were not affected by the doctrine of unjust enrichment. The judgment set aside the previous order and allowed the appeal in favor of the assessees.