2023 (11) TMI 1287 - HC - Customs

Refund claim - unjust enrichment - time limitation - HELD THAT - The judgment rendered inter partes on 06 August 2018 has attained finality. Even the Supreme Court in its order of 15 September 2023 2023 (12) TMI 131 - SC ORDER has not interfered with the judgment handed down by this Court. Thus, issues which stand conclusively settled in terms thereof cannot be reopened. The observation of the Hon ble Supreme Court with respect to the contentions being left open to be agitated by parties on merits, can only be confined to an issue which did not stand concluded in terms of the judgment which was rendered on 06 August 2018. There are no ground to interfere with the order impugned - appeal dismissed.

Summary

Issues:
- Validity of the order passed by the Customs Excise & Service Tax Appellate Tribunal (CESTAT)
- Consideration of refund claim and objections raised in a writ petition
- Special Leave Petition (SLP) filed by the Department appellant
- Interpretation of observations made by the Supreme Court in the SLP
- Reopening of settled issues in light of final judgments
- Question of limitation and unjust enrichment considered by CESTAT

Analysis:

The High Court addressed the appeal filed by the Principal Commissioner challenging the validity of the CESTAT's order, which upheld the Order-in-Original granting the respondent's refund claim. The Court referred to a previous writ petition where it quashed the impugned order and directed the refund application to be decided on its merits. The Department appellant filed an SLP, which was disposed of with observations regarding the order of remand. The High Court emphasized that issues conclusively settled by previous judgments could not be reopened, despite the contentions raised by the appellant.

Regarding the interpretation of the Supreme Court's observations in the SLP, the High Court clarified that only issues not conclusively settled could be agitated. The Court found no substantial question of law arising from the CESTAT's order and noted that the question of limitation was based on the earlier judgment. In addressing the objection of unjust enrichment, the CESTAT emphasized the importance of following judicial discipline and upheld the respondent's claim based on the Chartered Accountant's certificate, which showed that the duty was not passed on and was treated as a receivable. The Court found no grounds to interfere with the CESTAT's order and dismissed the appeal accordingly.