2004 (11) TMI 272 - AT - Central Excise

Summary

Issues:
1. Refund eligibility and passing on the incidence of duty to customers.

Analysis:
The appeal before the Appellate Tribunal CESTAT, Bangalore concerned the Revenue's grievance against the Order-in-Appeal (OIA) accepting the assessee's plea for refund eligibility and non-passing of the duty incidence to their customers. The Revenue contended that the refund should be passed on to the ultimate consumer, not the dealer, citing a Madras High Court judgment. The Revenue argued that the burden of proof regarding the duty incidence not being passed to consumers was not met by the assessee. The Tribunal noted the Revenue's reliance on a previous case involving Maruti Udyog Ltd. where evidence showed duty incidence passed on to consumers.

The learned Counsel for the assessee highlighted that the Commissioner (Appeals) thoroughly examined all records and evidence, concluding that the duty incidence was not passed on to dealers, as evidenced by higher rates borne by the assessee and clear invoicing practices. The Counsel argued that the burden of proving non-passing of duty incidence to consumers was not in line with the relevant sections of the Central Excise Act, citing the Madras High Court's decision in Addison & Co. v. CCE. The Counsel emphasized that the issue had already been settled in previous judgments, supporting the rejection of the Revenue's appeal.

Upon careful consideration, the Tribunal found that the Revenue's appeal was based on disagreement with the Madras High Court's judgment in Addison & Co. v. CCE, which was also supported by a decision in another case involving Jagsonpal Pharmaceuticals Ltd. The Tribunal noted that there was no stay against the Madras High Court's order, and the evidence on record indicated that duty incidence had indeed been passed on to dealers, not consumers. Consequently, the Tribunal rejected the Revenue's appeal, affirming the lower authorities' findings and the established legal principles regarding the passing on of duty incidence.

In conclusion, the Tribunal upheld the Commissioner (Appeals)'s decision, emphasizing that the burden of proof regarding the passing on of duty incidence to consumers was not on the assessee, as established by relevant legal provisions and previous judicial precedents. The Tribunal's judgment highlighted the importance of thorough examination of evidence and adherence to legal principles in determining refund eligibility and duty incidence passing in excise matters.