2017 (5) TMI 1065 - AT - Customs

Refund of ADD - unjust enrichment - Appellant submitted before the Commissioner(Appeals) that opportunity may be given to explain their case on basis of various of documents despite amount accounted in profit and loss account incidence of duty has not been passed on - Held that - It is settled law that every litigant should be given ample opportunity for defending their case - appellant should get one more opportunity to substantiate their case that the incidence of duty has not been passed on - matter remanded for giving one more opportunity to appellant - appeal allowed by way of remand.

Summary

Issues involved: Unjust enrichment in refund claim of anti-dumping duty.

Analysis:
1. The appellant filed a refund claim for the anti-dumping duty paid, which was sanctioned by the adjudicating authority. However, the sanctioned amount was credited to the consumer welfare fund because the appellant could not prove that the duty incidence had not been passed on to another person.

2. The appellant appealed to the Commissioner (Appeals) arguing that they should be given an opportunity to submit all documents to establish that the duty incidence was not passed on. The Commissioner dismissed the appeal based on the duty amount being accounted for in the profit and loss account.

3. The appellant's counsel argued that merely booking the duty amount in the profit and loss account does not conclusively prove passing on the duty incidence. They provided a certificate stating the duty incidence was not passed on and requested an opportunity to submit more documents for clarification.

4. The Revenue, represented by the Assistant Commissioner, supported the findings of the impugned order.

5. The sole issue was unjust enrichment concerning the refund claim of anti-dumping duty. Both lower authorities concluded that the duty incidence was passed on based on its accounting in the profit and loss account. However, the Member (Judicial) disagreed, stating that mere accounting of duty in the profit and loss account does not definitively establish passing on the duty incidence.

6. The Member (Judicial) emphasized that the appellant should be given another chance to prove that the duty incidence was not passed on. The matter was remanded to the original adjudicating authority for the submission of necessary documents and explanations. The adjudicating authority was directed to reprocess the refund claim within three months, ensuring the appellant's right to a personal hearing.

7. The judgment highlighted the importance of providing litigants with ample opportunities to defend their case, especially in refund claims. The decision aimed to ensure fairness and proper substantiation of claims, ultimately benefiting both parties involved.