2015 (9) TMI 142 - HC - Customs

Claim for refund - Respondent had imported 20 Rolls Colour Graphic film and filed Bill of entry for assessable value under CTH 3702 However refund claim of respondent was rejected Tribunal by impugned order allowed claim of assesse by upholding order of commissioner Held that - undisputedly tribunal had directed Commissioner (Appeals) to examine issue as to whether respondents/assessee makes out case and remanded for fresh decision on issue of unjust enrichment Commissioner (Appeals) on basis of certificate of Chartered Accountant and details of balance sheet found that claim of refund as granted by original authority requires no interference In that view of matter proceedings before Commissioner (Appeals) were limited only for examination of issue as to whether case of unjust enrichment on basis of material placed on record Present appeal only arises out of concurrent finding of fact as recorded by three authorities and as such no substantial question of law arises Thus Appeal rejected Decide against revenue.

Summary

Issues:
1. Entertaining a refund claim without challenging the assessment order.
2. Determination of unjust enrichment for refund claim.
3. Appeal based on concurrent orders by three authorities.

Entertaining a refund claim without challenging the assessment order:
The case involved the appellant Revenue challenging a refund claim filed by the respondent for an imported item. The refund claim was initially rejected, leading to a series of appeals and orders. The appellant argued that a refund claim cannot be entertained without challenging the assessment order. The appellant relied on the judgment in Aurangabad Paper Mills v. Union of India. However, the High Court noted that the CESTAT had directed the Commissioner (Appeals) to re-examine the issue of unjust enrichment and make a fresh decision based on all relevant evidence. The Commissioner (Appeals) upheld the refund claim based on the evidence provided, a decision that was also affirmed by the CESTAT. The High Court concluded that since the matter was limited to determining unjust enrichment based on evidence, and the findings of fact were consistent across all authorities, no substantial question of law arose in this regard.

Determination of unjust enrichment for refund claim:
The main issue in the case revolved around the determination of unjust enrichment for the refund claim. The appellate authority initially held that the refund could only be granted if the respondents rebutted the presumption of unjust enrichment. The matter was remanded to the Commissioner (Appeals) for a fresh decision on this issue. The Commissioner (Appeals), after examining the evidence provided by the respondents, including a certificate from a Chartered Accountant and balance sheet details, upheld the refund claim. This decision was further supported by the CESTAT. The High Court observed that the proceedings were limited to examining whether unjust enrichment existed based on the evidence presented, and since all authorities agreed on the findings, the appeal on this issue was rejected.

Appeal based on concurrent orders by three authorities:
The final issue dealt with the appeal based on the concurrent orders issued by the three authorities involved in the case - the Original Authority, the Commissioner (Appeals), and the CESTAT. The appellant contested the decisions made by these authorities, arguing that the appeal was tenable as there was no perversity in their findings. However, the High Court noted that all three authorities had arrived at consistent findings based on the evidence presented regarding the refund claim and unjust enrichment. Since there was no substantial question of law arising from the concurrent findings, the appeal was rejected based on the agreement of all authorities on the matter.

This detailed analysis of the judgment highlights the key legal issues, arguments presented by both parties, decisions made by the authorities involved, and the final ruling of the High Court based on the facts and legal principles applied in the case.