Refund claims barred by limitation and unjust enrichment where duty burden was passed on to buyers; credit to Consumer Welfare Fund required.

Refund claims arising from a classification dispute were rejected as barred by limitation and by unjust enrichment because the assessee had passed the duty burden on to customers during the relevant period. Payment of duty under protest did not save the time-barred portions once the payment was treated as normal duty for limitation purposes, and section 11B applied. The Tribunal relied on price increases, recovery from buyers, and the refund application to conclude that the incidence of duty had been passed on. The alleged note-sheet order was rejected, and the amount already taken as Modvat credit did not justify refund. Any amount otherwise admissible was required to be credited to the Consumer Welfare Fund under section 12C.

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Issues: Whether the refund claims were barred by limitation and by the doctrine of unjust enrichment, and whether the amounts were liable to be credited to the Consumer Welfare Fund.

Analysis: The refund claims arose from a classification dispute, but the Tribunal held that the assessee had passed on the duty burden to customers throughout the relevant period. Payment of duty under protest did not protect the claims once the duty was treated as normal payment for the purpose of limitation, and the statutory bar under section 11B applied to the time-barred portions. The Tribunal also found that the material on record, including price increases, recovery from buyers, and the refund application itself, showed that the incidence of duty had been passed on. The plea based on an alleged note-sheet order was rejected, and the amount already taken as Modvat credit was also held not to warrant refund in the assessee's favour. The amounts found admissible on merits were nonetheless required to be credited to the Consumer Welfare Fund under section 12C.

Conclusion: The refund claims were hit by limitation and unjust enrichment, and the assessee was not entitled to refund of any part of the amount claimed.

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