2018 (1) TMI 380 - AT - Customs

Refund claim - duty paid under protest - unjust enrichment - Held that - all the documents are produced now before me - appellant claims that they are in a position to satisfy the authorities below on the issue and both sides request to remand the matter to the adjudicating authority - appeal allowed by way of remand.

Summary

Issues:
Refund claims transfer to Consumer Welfare Fund under Customs Act, 1962.

Analysis:
The case involved two Appeals against an Order-in-Appeal passed by the Commissioner (Appeals), Customs, Ahmedabad, regarding refund claims. The Appellant filed refund claims after a favorable decision on the issue of enhancement of transaction value. However, show cause notices were issued proposing transfer of the refund amount to the Consumer Welfare Fund under Section 27(2) of the Customs Act, 1962. Despite the refund claims being sanctioned, they were transferred to the Fund. The Appellant, aggrieved by this, filed Appeals before the Commissioner (Appeals), who upheld the decision to transfer the refund claims. Consequently, the present Appeals were filed challenging this decision.

The Appellant's representative argued that the Commissioner (Appeals) erred in assuming that the duty paid under protest was recovered from customers as the cost of the product due to its absence in the balance sheet under the heading "receivable." The representative presented evidence, including invoices, ledger, balance sheet, and a CA certificate, to demonstrate that the duty paid under protest was treated as a contingent asset in the balance sheet notes initially and later shown under "Loans and Advances" following the favorable Order-in-Appeal. Similar certificates were submitted for both Appeals.

On the other hand, the Revenue's representative contended that the Appellant did not initially claim that the duty was paid under protest and treated as a contingent asset, and the CA certificates were only produced later. The Revenue requested a remand to verify the documents presented by the Appellant.

After hearing both sides and reviewing the record, the Tribunal found that the Appellant had indeed treated the duty paid under protest as a contingent asset initially and later as a receivable under "Loans and Advances" following the favorable decision. As all relevant documents were now provided, the Tribunal set aside the impugned order and remanded the matter to the adjudicating authority for a fresh decision, considering the evidence on record and any additional evidence to be presented during the proceedings. Consequently, the Appeals were allowed by way of remand.