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2007 (9) TMI 125 - AT - CustomsEducation cess paid on August 2004 for the goods cleared during July 2004 Refund field later on on basis of clarificatory circular Records shown by assessee shows that burden of duty has not been passed on to the customers so refund is admissible
Issues:
Refund claim due to education cess levy; Burden of duty passed on to customers; Timing of education cess payment and refund claim. Analysis: The appeal was filed by the Revenue against the order allowing a refund of Rs. 1,00,169/- to the respondents by the Commissioner of Central Excise (Appeals). The case revolved around the education cess levied on excisable goods from 9-7-2004. The Revenue requested payment of education cess for the stock of cement on 9-7-2004, which was paid on 5-8-2004 for the stock cleared between 9-7-2004 to 12-7-2004. Subsequently, a clarification was issued that education cess was not applicable to goods manufactured before 9-7-2004, leading the respondents to file a refund claim. The adjudicating authority sanctioned the refund but credited it to the Consumer Welfare Fund, alleging the burden of duty had been passed on to customers. The respondents appealed to the Commissioner (Appeals), who determined that the burden of duty had not been shifted to customers, thus justifying the refund. The Revenue, however, argued that the refund was allowed based on the price of cement remaining unchanged before and after the levy, without sufficient evidence that the duty burden was not transferred to customers during goods clearance. The Tribunal noted that the education cess was paid after the goods were cleared, with the refund claim filed subsequently. The Commissioner (Appeals) relied on the records and findings of another factory of the respondents where a similar refund claim was approved. The Tribunal upheld the decision, stating that the Revenue failed to provide evidence contradicting the finding that the duty burden was not passed on to customers. Consequently, the appeal by the Revenue was dismissed. The judgment was pronounced in open court, affirming the decision to allow the refund to the respondents based on the absence of evidence indicating the passing on of duty burden to customers.
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