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Issues involved: Appeal for refund of duty on the ground of unjust enrichment and denial of relief due to reduction of fine and penalty by the Tribunal.
Summary: The appeal before the Appellate Tribunal CEGAT, Court No. I, New Delhi arose from a claim for refund of duty on the basis of unjust enrichment, which was rejected along with the denial of relief for reduction of fine and penalty by the lower authorities. The appellant had imported Poppy Seeds assessed at a higher duty rate despite the transaction invoice showing a lower value. The consignment was confiscated with a redemption fine and penalty. The Tribunal accepted the transaction value for duty assessment, reducing the fine and penalty. The appellant sought refund of excess duty paid and reduction in fine and penalty, which was denied by the lower authorities citing unjust enrichment. Regarding unjust enrichment, the lower authority observed discrepancies in the appellant's evidence, questioning the sale of goods still with Customs, inconsistencies in invoices, lack of buyer details, and high expenses in financial documents. The appellant argued that sales realization and balance sheet proved no passing of duty liability and established loss due to the single import transaction. The Tribunal reviewed submissions from both sides and upheld the rejection of documents by the lower authorities, noting the lack of credibility and necessary details in the documents for commercial transactions worth over Rs. 15 lakhs. While denying the refund claim, the Tribunal found error in not granting the appellant the benefit of reduced fine and penalty, which did not fall under unjust enrichment. The excess fine and penalty were ordered to be returned to the appellant promptly. The impugned order was confirmed with the modification for the return of amounts paid as fine and penalty, disposing of the appeal accordingly.
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