2007 (11) TMI 64 - HC - Customs

If both the authorities Comm(A) & Tribunal held that there is no unjust enrichment then question of law doesn t arise for consideration of HC Order passed by Settlement Comm. & Commissioner hasn t been challenged by revenue so Comm(A) & Tribunal is justified in allowing interest on delayed refund

Summary

Issues:
1. Applicability of principles of unjust enrichment for refund claim by the assessee.
2. Entitlement of the assessee for refund along with interest from the date of expiry of the refund claim.

Analysis:

Issue 1: The first issue raised in the appeal pertains to the applicability of the principles of unjust enrichment to the case at hand for considering the refund claim of the respondent-assessee. The assessee had filed two refund applications, one based on the order passed by the Settlement Commissioner and another for the refund of the entire advance amount paid. The revenue issued a show cause notice during the investigation, and despite the detailed reply by the assessee, the adjudicating authorities directed to keep the claimed amount in the Consumer Welfare Fund. The Commissioner of Appeals allowed the refund claim of the assessee with interest, which was further confirmed by the Appellate Tribunal. The High Court held that since both authorities found no unjust enrichment, the question of law raised by the revenue did not arise, leading to the conclusion that there was no substantial question of law in the appeal.

Issue 2: The second issue concerns the entitlement of the assessee for refund along with interest from the date of expiry of the refund claim. The High Court noted that the orders passed by the Settlement Commissioner and the Commissioner were not challenged by the revenue. Therefore, the Commissioner of Appeals and the Tribunal were justified in allowing the interest claimed by the assessee. Consequently, the High Court dismissed the appeal against the concurrent findings of the authorities below, upholding the decision in favor of the assessee for the refund claim along with interest.

In conclusion, the High Court upheld the decisions of the lower authorities, emphasizing the absence of unjust enrichment and the entitlement of the assessee for the refund amount along with interest.