2004 (8) TMI 231 - AT - Central Excise

Summary

Issues:
1. Refund claim time-barred and unjust enrichment
2. Credit taken without permission
3. Burden of duty passed on to customers

Analysis:
1. The appellant filed a refund claim after the Tribunal set aside the demand and penalty imposed on them. The Revenue rejected the refund claim as time-barred and alleged unjust enrichment. However, the appellant argued that the amount was paid during the adjudication proceedings and in compliance with the Tribunal's orders, hence no unjust enrichment occurred. The Tribunal held that the Revenue cannot reject a refund claim filed in pursuance of its order on the grounds of limitation. The Hon'ble Gujarat High Court's decision in Parle International Ltd. case was cited to support the appellant's claim, leading to the appeal being allowed.

2. The Revenue contended that the credit was taken without permission and duty was not paid under protest. Despite this, the Tribunal found that the appellant was entitled to the credit as a consequential relief to the Tribunal's order. The Revenue's argument was not sustained, and the appellant's reliance on the Gujarat High Court decision further supported their case. The Tribunal set aside the impugned orders related to the credit taken without permission.

3. Regarding the burden of duty passed on to customers, the Revenue argued that the appellant had to prove this aspect even after the Tribunal's order. However, the Tribunal found that the duty was paid after goods clearance and in compliance with the Tribunal's stay order. Citing the Gujarat High Court's decision, the Tribunal held that the amount deposited during adjudication proceedings should not be considered as duty for the purpose of unjust enrichment. As a result, the appellant was entitled to the amount deposited during the proceedings and in pursuance of the Tribunal's stay order. The impugned orders were set aside, and the appeals were allowed.