2001 (2) TMI 473 - AT - Central Excise

Summary

Issues Involved:
- Whether refund of excise duty paid in excess is hit by the principle of unjust enrichment.

Analysis:

Issue 1: Unjust Enrichment
- The appellant, M/s. Modern Syntex (I) Ltd., sold machines to M/s. Modern Threads (India) and paid excise duty, seeking a refund later.
- The Assistant Commissioner disallowed excess Modvat credit taken by the appellant, leading to a refund claim rejection based on unjust enrichment.
- The appellant argued that the customer, M/s. Modern Threads, did not pay the entire duty amount, as evidenced by canceled cheques and ledger accounts.
- The appellant cited the decision in C.C.E., Chandigarh v. Oswal Cotton Spg. Mills to support their claim that the duty burden was not entirely passed on to the customer.
- The Revenue contended that the appellant collected the duty amount from the buyer and made efforts to repay it.
- The Tribunal noted that M/s. Modern Threads had paid the disputed amount and held that the appellant had rebutted the presumption of passing on the duty incidence to the buyer.
- Referring to the decision in Mafatlal Industries v. U.O.I., the Tribunal ruled in favor of the appellant, allowing the refund of excise duty paid in excess.

Conclusion:
The Tribunal allowed the appeal, stating that the appellant had successfully rebutted the presumption of passing on the duty burden to the buyer, making them eligible for the refund of the excise duty paid in excess.