1999 (3) TMI 158 - AT - Central Excise

Summary

Issues:
Unjust enrichment - Burden of proof on party to show duty not passed on to customer.

Analysis:
The judgment deals with two appeals filed by M/s. Calcutta Steel Industries concerning a common impugned order on unjust enrichment. The main issue revolves around proving that the duty incidence has not been passed on to the customer. The burden of proof lies on the party to demonstrate this. The appellants argued that no duty element was mentioned in the invoice, and they did not pass on any duty to the customers. They presented various documents to support their claim, including balance sheets, profit and loss accounts, manufacturing and trading accounts, G.P. '1's correlated with invoices, R.G. 23-A copies, costing data, and other records. However, the Commissioner concluded that the party only provided a certificate from a Chartered Accountant, which was insufficient to rebut the statutory presumption under Section 12B that duty incidence is passed on to buyers.

The Commissioner's decision was challenged on the grounds that all relevant documents were indeed submitted to the Assistant Collector but may not have been adequately considered by the Commissioner. The Judge noted that if certain documents were not presented before the Commissioner, the party should have been directed to submit them. Therefore, the Judge remanded the matter back to the Commissioner (Appeals) for a fresh examination. The appellants were given an opportunity to substantiate their claim that the duty element was not passed on to the customer. The Commissioner (Appeals) was instructed to review the evidence and make an appropriate decision based on the submissions provided by the party.

In conclusion, the appeals were allowed by way of remand, indicating that the matter will be reconsidered by the Commissioner (Appeals) to determine whether the duty incidence was passed on to the customers. The judgment highlights the importance of providing sufficient evidence to rebut the presumption of unjust enrichment and the need for a thorough examination of all relevant documents before reaching a decision.