Refund of excess duty on depot sales allowed, subject to proof that the claim is not hit by unjust enrichment

Refund of excess duty paid on clearances from the factory was recognised where the goods were later sold from the depot at a lower prevailing price, because the same issue had already been allowed in the assessee's own case for a similar period and there was no material factual distinction. The Tribunal relied on the earlier Tribunal decision and the Board's circular to hold that rejection of the refund could not be sustained. Relief was made conditional on the assessee proving before the original authority that the claim was not barred by unjust enrichment.

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Issues: Whether the assessee was entitled to refund of excess duty paid on clearances from the factory when the goods were later sold from the depot at a lower prevailing price, and whether the refund was subject to the bar of unjust enrichment.

Analysis: The Tribunal noted that the same issue had already been allowed in the assessee's own case for a similar period by the Commissioner (Appeals), relying on an earlier Tribunal decision and the Board's circular. As there was no material factual distinction between the earlier matter and the present claim, the rejection of refund could not be sustained. The Tribunal, however, made the relief conditional on the claimant establishing before the original authority that the refund was not hit by unjust enrichment.

Conclusion: The assessee was entitled to refund of the excess duty, subject to proof that the claim was not barred by unjust enrichment.

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