2003 (10) TMI 205 - AT - Central Excise

Summary

Issues:
1. Refund claim rejected on the ground of limitation
2. Payment of duty under protest
3. Doctrine of unjust enrichment

Analysis:
1. The appeal was filed against the order-in-appeal affirming the rejection of the refund claim by the Commissioner (Appeals) due to limitation. The appellants argued that their claim was not time-barred as it was filed within six months of the Tribunal's order setting aside the duty confirmed and deposited by them. They contended that the payment of duty under protest should determine the starting point for the limitation period. Reference was made to the case of Mafatlal Industries for support.

2. The Tribunal noted that the appellants had filed an appeal immediately after depositing the duty, indicating that the payment was made under protest. Citing the Apex Court's ruling in Mafatlal Industries, the Tribunal emphasized that the payment of duty under protest should be considered as such. The Commissioner (Appeals) erred in not following this principle and mistakenly referred to a different part of the judgment. Previous Tribunal cases were also cited to support the appellants' position, leading to the conclusion that the limitation ground for rejecting the refund claim was not valid.

3. While the authorities below did not address the merits of the refund claim and solely dismissed it on the basis of limitation, the Tribunal highlighted that the doctrine of unjust enrichment needed further examination. The appellants argued that this doctrine should not apply since the duty was paid following the Commissioner (Appeals) order, which was later overturned by the Tribunal. However, as no findings were made on this matter by the lower authorities, the Tribunal directed the adjudicating authority to assess the unjust enrichment aspect after hearing both parties. Therefore, the matter was remanded for a fresh decision on the refund claim based on its merits in accordance with the law.

In conclusion, the impugned order rejecting the refund claim on limitation grounds was set aside, and the case was remanded to the adjudicating authority for a detailed examination of the claim on its merits, including the doctrine of unjust enrichment, after providing the appellants with a fair hearing.