2005 (11) TMI 99 - CGOVT - Central Excise

Summary

Issues Involved:
Claim of rebate on Central Excise duty paid on Aviation Turbine Fuel supplied to Royal Nepal Airlines, applicability of unjust enrichment under Section 11B of the Central Excise Act, 1944.

Analysis:
The Revision Application was filed against the Order-in-Appeal rejecting the appeal regarding the claim of rebate on Central Excise duty paid on Aviation Turbine Fuel supplied to Royal Nepal Airlines. The applicant, M/s I.O.C. Ltd., had a bonded warehouse for storing ATF and supplied duty paid ATF to Royal Nepal Airlines. The rebate claimed by the applicant was contested by the adjudicating authority citing unjust enrichment under Section 11B of the Central Excise Act, 1944. The demand of Rs. 83,508/- was confirmed by the original authority. The appeal against this order was also rejected by the Commissioner (Appeals).

In the Revision Application, the applicant relied on various judgments to support their claim that the issuance of credit notes or payment through cheques post-clearance indicates that the duty incidence was not passed on, thus unjust enrichment does not apply. The applicant argued that the judgments cited by the Commissioner (Appeals) were not relevant to the case. During the hearing, the applicant reiterated their arguments and stated that no clause of unjust enrichment is applicable to rebates.

Upon careful consideration of the submissions and cited judgments, the government noted that the applicants were eligible to claim rebate on the Central Excise duty paid on the exported goods as per relevant notifications. The government also determined that the provision of unjust enrichment under Section 11B of the Central Excise Act, 1944 was not applicable in this case due to the specific proviso related to the rebate of duty on goods exported out of India. Consequently, the government set aside the Order-in-Appeal, allowing the Revision Application and granting the rebate claimed by the applicant.

In conclusion, the government's decision was based on the eligibility of the applicant to claim rebate on the duty paid on the exported goods and the inapplicability of unjust enrichment under the specific proviso of Section 11B of the Central Excise Act, 1944. The Revision Application was successful, and the impugned Order-in-Appeal was set aside, granting relief to the applicant.