2016 (11) TMI 411 - AT - Central Excise

Refund - unjust enrichment - Held that - if the credit notes are issued after the assessment of the goods then at the time of assessment of the goods duty is already passed on to the purchaser and therefore the duty involved in such value which is reduced by way of issue of credit notes is hit by provisions of unjust enrichment - Appeal is rejected.

Summary

Issues:
Refund claim for excess excise duty, principles of unjust enrichment, reliance on Chartered Accountant's certificate, issuance of credit notes after assessment of goods.

Analysis:
The appeal before the Appellate Tribunal CESTAT ALLAHABAD was against the Order-in-Appeal rejecting a refund claim for excess excise duty. The appellant, a yeast manufacturer, claimed refund based on the issuance of credit notes to wholesale dealers after paying excise duty as per assessable value. The Original Authority rejected the refund claim citing unjust enrichment principles due to lack of evidence that duty incidence was not passed on. The Commissioner (Appeals) upheld the rejection referring to previous judgments. The appellant contended that a Chartered Accountant's certificate should suffice for the refund claim, citing a precedent. The Tribunal considered the arguments and the Supreme Court's ruling in a related case, emphasizing that if credit notes are issued after goods assessment, duty is deemed passed on. Therefore, the appeal was dismissed based on the principle of unjust enrichment.