2004 (12) TMI 262 - AT - Central Excise

Summary

Issues: Refund claim time-barred, Principle of unjust enrichment.

Refund Claim Time-Barred: The appellant's refund claim of duty was dismissed by the learned Commissioner (Appeals) on the grounds of being time-barred and hit by the principle of unjust enrichment. The duty was paid voluntarily by the appellant, and the excess payment occurred due to a reduction in excise duty from 18% to 16% ad valorem. The appellant continued to pay duty at the higher rate despite the reduction. The Tribunal found that the refund claim was not filed within the prescribed time under Section 11B(1) of the Act. The argument that it was money, not duty, paid in excess was deemed misconceived as only the excess duty was paid, making Section 11B applicable. The Tribunal upheld the Commissioner's decision, stating that the provisions of Section 11B did apply in this case.

Principle of Unjust Enrichment: Despite the captive use of goods by the appellant in their PCC Pole factory, the principle of unjust enrichment was found to be applicable. Citing a Supreme Court decision, the Tribunal noted that the burden was on the appellant to prove that the duty incidence was not passed on to customers. The appellant failed to provide such proof, and the reliance on a previous case law was deemed unhelpful. The argument of provisional assessment was also rejected due to lack of evidence. Ultimately, the Tribunal found no illegality in the impugned order and dismissed the appeal, upholding the decision of the Commissioner.