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2024 (6) TMI 40 - AT - Central Excise


Issues involved: Refund claim arising from finalization of provisional assessment; Denial of refund claim based on unjust enrichment; Scope of Show Cause Notice.

Refund Claim and Provisional Assessment: The appellant, a company selling 'Asbestos Cement Sheets,' filed a refund claim after finalization of provisional assessment, where it was found they had short-paid and overpaid duty. The appellant argued that Rule 7 of the Central Excise Rules, 2002 allows for adjustment of such amounts, but the adjustment was not permitted, leading to the refund claim.

Unjust Enrichment and Show Cause Notice: The appellant contended that the denial of the refund claim on the grounds of unjust enrichment exceeded the scope of the Show Cause Notice, which had raised the issue of time-bar but not unjust enrichment. Both authorities had rejected the refund claim based on unjust enrichment, contrary to the original notice.

Evidence and Precedents: The appellant presented a Chartered Accountant's certificate stating that duty discounts were not passed on to buyers. They cited previous cases where similar refund claims were allowed, emphasizing that the duty element was not transferred to consumers. The Tribunal noted that the dealers were not registered for CENVAT Credit, further supporting the appellant's position.

Decision and Rulings: Relying on precedents and the evidence provided, the Tribunal found that the denial of the refund claim on the grounds of unjust enrichment was unfounded. They set aside the impugned order and allowed the appeal, concluding that the appellant had sufficiently demonstrated that unjust enrichment did not apply in this case.

Conclusion: The Tribunal ruled in favor of the appellant, overturning the denial of the refund claim based on unjust enrichment and emphasizing the lack of evidence of passing on the duty element to consumers.

 

 

 

 

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