2017 (11) TMI 149 - AT - Central Excise

Refund of duty paid under protest - unjust enrichment - Held that - Invoices itself clearly indicate that the assessee had granted benefit of only 25% of the duty element to the customers and that they have to produce the evidence which is to be examined and for that purpose, the Commissioner(Appeals) has remanded the matter back to the original authority to reexamine the evidences produced by the assessee - matter on remand. The Commissioner(Appeals) has the power of remand which is now well settled by catena of judgments of the Tribunal. Appeal allowed by way of remand.

Summary

Issues:
Classification of products for duty payment and refund claim process.

Analysis:
The appeal involved a dispute regarding the classification of products manufactured by the appellant for duty payment. The appellant paid duty under protest for the period April 1994 to July 1994 and filed a refund claim which was initially sanctioned by the original authority. However, the amount was ordered to be credited to the consumer welfare fund. Subsequent appeals and remands ensued, leading to the Commissioner(Appeals) sanctioning the refund, which was challenged by the Department. The matter was remanded multiple times, with the final order from CESTAT directing reexamination of evidence by the original authority.

The appellant contended that the impugned order was not sustainable as it did not properly appreciate the directions of the Tribunal and decisions rendered by it. The appellant argued that the Commissioner(Appeals) did not have the power to remand the matter back to the original authority, and the impugned order lacked reasoning. On the other hand, the respondent defended the remand order, stating that the Commissioner(Appeals) had the authority to remand the case for proper consideration of the Tribunal's directions.

Upon reviewing the submissions and records, the Tribunal found no infirmity in the impugned order remanding the case back to the original authority. The Commissioner(Appeals) had correctly observed that the evidences presented by the appellant needed reexamination in light of the Tribunal's directions. The Tribunal also noted that the Commissioner(Appeals) had not passed any adverse order against the appellant but merely remanded the case for further examination, citing established legal principles and previous decisions in support of the remand order.

In conclusion, the Tribunal dismissed the appeal, affirming the Commissioner(Appeals)'s power of remand and finding no merit in the appellant's arguments. The decision was based on the proper consideration of evidence and adherence to the Tribunal's directions, ultimately upholding the remand for further examination of the refund claim.