2018 (6) TMI 261 - AT - Customs

Refund of Customs Duty - denial on the ground of unjust enrichment - Held that - The Chartered Accountant has categorically stated that the amount of ₹ 1,28,979/- is excess of customs duty paid and not being passed on to any buyers - it is conclusively evidenced that the appellant had not passed on the amount to the buyers - appeal allowed - decided in favor of appellant.

Summary

Issues:
Refund of customs duty on the grounds of unjust enrichment.

Analysis:
The appeal was filed against the rejection of a refund claim amounting to ?1,28,979/- paid in excess on 31.03.2012, based on the concept of unjust enrichment. The appellant provided a Chartered Accountant's Certificate and a balance sheet to demonstrate that they had not passed on the excess duty to customers. The first appellate authority initially rejected the claim citing the absence of the amount in the balance sheet for the FY 2013-14 and 2014-15. However, upon review, the Tribunal found this reasoning factually incorrect as the balance sheet clearly indicated an amount of ?3,54,646/- under "Amount due as Refund of excess duty paid." Consequently, the Tribunal concluded that the appellant had not passed on the excess duty to buyers, rendering the impugned order unsustainable. Therefore, the Tribunal set aside the impugned order and allowed the appeal with consequential relief.