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TMI Blog2008 (11) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... r, the appellants discharge the duty liability on the inputs along with interest. - Since, the appellants had paid the duty along with interest and cleared the final product on payment of duty, they were under the belief that they were entitled for Cenvat credit. However, they filed a refund claim of the duty paid on the inputs. – held that – provision of unjust enrichment are not applicable – refund allowed. - E/739/2008 - 1281/2008 - Dated:- 14-11-2008 - Shri T.K. Jayaraman, Member (T) Shri N. Anand, Advocate, for the Appellant. Ms. Sudha Koka, SDR, for the Respondent. [Order (Oral)].- This appeal has been filed against the Order-in-Appeal No. 137/2008-C.E., dated 30-6-2008 passed by the Commissioner of Central Excise (App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he refund on merit, but in view of the bar of the unjust enrichment he has rejected the refund claim. 6. The learned Advocate argued that in the present case no doubt, the appellant made a mistake in filing the refund claim. But a perusal of the refund claim in the last paragraph itself shows that they had also asked for the Cenvat credit to be taken. What all is required by the appellant is that they should be allowed to take Cenvat credit. 7. The learned Departmental Representative stated that no doubt, the appellants are entitled for the Cenvat credit, but it is equivalent to give a refund to the appellant and once it is a refund then there is a statutory presumption of passing on the duty burden to buyer. The appellant is duty b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty on the inputs is included in the final product there is a cascading effect on the cost of the final product. To mitigate the cascading effect, the Cenvat credit scheme had been introduced with effect from 1986 in our country. Once, there is evidence that input has suffered central excise duty, the appellant is entitled for Cenvat credit. This Cenvat credit is used for payment of duty on the final products. Therefore, when a manufacturer uses certain inputs on which duty has been paid, by law he is entitled for the credit. This cannot be denied on the ground of unjust enrichment. 10. Unjust enrichment arises when a manufacturer passed on the burden of duty to a buyer and later claimed refund of the duty passed on for some reason or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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