2005 (9) TMI 154 - AT - Central Excise

Summary

Issues involved:
The issues involved in the judgment are the applicability of Section 11B to duty paid under compounded levy scheme and the bar of unjust enrichment in relation to refund claims.

Summary:

Issue 1: Applicability of Section 11B to duty paid under compounded levy scheme
The case involved a dispute regarding the refund claim of Rs. 4,73,323, which was initially credited to the Consumer Welfare Fund due to the bar of unjust enrichment. However, the appellate authority set aside this decision, stating that the provisions of Section 11B are not applicable to duty paid under the compounded levy scheme. The Tribunal referred to the case of Mohinder Steels Ltd. v. Commissioner of Central Excise, Chandigarh, which held that general provisions of excise law do not apply to the compounded levy scheme. The Tribunal also cited the case of Commissioner v. Reghuvar (India) Ltd., emphasizing that specific schemes like the compounded levy scheme have their own procedures and remedies, and general provisions should not be applied. The Tribunal concluded that the provisions of Section 11B do not apply to duty paid under the compounded levy scheme.

Issue 2: Bar of unjust enrichment in relation to refund claims
The Tribunal further referenced the case of Shri Rajendra Rolling Mills and Kothi Steel Ltd., which established that Rule 96ZB is a complete code for assessment of duty under the compounded levy scheme, and the bar of unjust enrichment does not apply to duty paid at a fixed rate under this scheme. The Tribunal clarified that the duty paid under the compounded levy scheme is not directly related to actual clearance and sale of goods, as the assessee is obligated to pay a set amount of duty regardless of actual clearance. Therefore, it was determined that the bar of unjust enrichment does not apply to the refund of duty excess paid under the compounded levy scheme. Consequently, the appeal filed by the Revenue was rejected.

This judgment highlights the specific application of legal provisions to schemes like the compounded levy scheme and clarifies the non-applicability of general provisions such as Section 11B and the bar of unjust enrichment in such cases.