2018 (2) TMI 1007 - AT - Central Excise

Refund of cenvat credit reversed - Bagasse - denial on the ground of unjust enrichment - Held that - The appellant has submitted the evidence in support of their claim before Tribunal. However, the same was not presented before Commissioner (Appeals) - The impugned order is set aside and the matter is remanded to the Commissioner (Appeals) for reconsideration - appeal allowed by way of remand.

Summary

Issues:

1. Denial of refund of cenvat credit reversed for bagasse cleared by M/s. Bhima SSK Ltd.
2. Challenge of liability to reverse under Rule 6(3) of the Cenvat Credit Rules.
3. Rejection of refund claim by the original adjudicating authority as premature.
4. Rejection of refund claim on the grounds of unjust enrichment by the Commissioner (Appeals).
5. Presentation of evidence before the Commissioner (Appeals) and Tribunal regarding unjust enrichment.
6. Remand of the matter to the Commissioner (Appeals) for fresh consideration based on the evidence produced.

Analysis:

1. The appeal was filed by M/s. Bhima SSK Ltd. against the denial of a refund of cenvat credit reversed for bagasse cleared by them. The appellant argued that they had reversed 6% under Rule 6(3) of the Cenvat Credit Rules and challenged the liability to reverse under the same rule. The Tribunal had previously ruled in their favor regarding this liability. However, the refund claim was initially dismissed as premature by the original adjudicating authority.

2. The Commissioner (Appeals) in the impugned order acknowledged that the refund was due but rejected it on the grounds of unjust enrichment. The appellant contended that the amount in question had been shown as receivable in their balance sheet during the relevant period. They presented a Chartered Accountant's certificate to support their claim, which was not submitted before the Commissioner (Appeals) as the original adjudicating authority did not raise the issue of unjust enrichment.

3. The Tribunal noted that the evidence supporting the claim on unjust enrichment was presented before them but not before the Commissioner (Appeals). Consequently, the impugned order was set aside, and the matter was remanded to the Commissioner (Appeals) for reconsideration. The appellant was given the opportunity to produce the necessary evidence before the Commissioner (Appeals) to substantiate their claim on unjust enrichment. The Commissioner (Appeals) was directed to decide the issue afresh after considering the evidence provided by the appellant.

4. The judgment, delivered by Mr. Raju, Member (Technical) on 29.12.2017, emphasized the importance of presenting all relevant evidence before the appropriate authorities to ensure a fair and thorough consideration of refund claims, particularly regarding issues such as unjust enrichment. The decision highlighted the procedural aspect of submitting evidence at the right stages of the adjudication process to support the claims effectively.