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Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (10) TMI AT This

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2018 (10) TMI 388 - AT - Central Excise


Issues:
Refund of excise duty based on quantity discounts provided to dealers and the concept of unjust enrichment.

Analysis:
The appellant, engaged in manufacturing excisable goods, provided quantity discounts to dealers, leading to a refund claim of excess excise duty paid on discounted amounts. The Deputy Commissioner rejected the claim citing unjust enrichment, indicating the burden of excise duty passed on to customers. The Commissioner (Appeals) upheld the decision, prompting the appellant to appeal. The appellant argued that discounts were part of normal trade practice, with reduced prices passed on to buyers through credit notes. Citing previous tribunal decisions, the appellant contended that no unjust enrichment occurred as discounts were transparently passed on. The Departmental Representative supported the Order in Appeal's findings.

The Tribunal noted that in the appellant's business model, no excise element was retained, ensuring reduced prices reached end customers. Examples showed discounts passed down to ultimate buyers, demonstrating no unjust enrichment. Financial statements revealed provisions for refund, supporting the transparency of transactions. Relying on a Supreme Court decision, the Tribunal held that as the burden of duty was not passed on, the appellant was entitled to the refund. The Commissioner (Appeals) decision was set aside, allowing the appeal with consequential benefits for the appellant.

 

 

 

 

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