9911796707
|
Home
Issues involved:
The issue involved in this case is whether post-clearance adjustments made by the assessee, such as issuing credit notes or cheques to the buyer of goods to take back the burden of duty, would exempt the assessee from the bar of unjust enrichment under Section 11B of the Central Excise Act. Summary of Judgment: Issue 1: Post-Clearance Adjustments and Unjust Enrichment The appellants, who were job workers for a company, received raw materials and supplied processed fabrics to the same company. They paid Additional Excise Duty but later realized the goods were exempt. They refunded the duty amount to the company. The Tribunal had divergent views on whether such post-clearance adjustments could avoid unjust enrichment. The claim for refund was initially rejected based on the principle of unjust enrichment under Section 11B. The appellant argued that a previous decision had been reversed by the Madras High Court. The Tribunal held that the dismissal of an appeal by the Supreme Court constituted a binding precedent, and thus, the claim for refund was declined based on previous rulings. Issue 2: Precedent and Binding Nature of Supreme Court Decisions The Tribunal considered the binding nature of Supreme Court decisions and the doctrine of merger. It was emphasized that even the dismissal of a Civil Appeal without reasons would serve as a binding precedent. The Tribunal held that the decision in a previous case, affirmed by the Supreme Court, had to be followed. Consequently, the claim for refund was declined based on established legal principles. In conclusion, the Tribunal dismissed the appeal, stating that the claim for refund of a certain amount was declined due to unjust enrichment principles, while another amount not collected by the appellant was not hit by such principles. The decision was based on the binding nature of Supreme Court precedents and established legal principles regarding unjust enrichment.
|
