Appeal Success: Excise Duty Refund Granted for Ready Made Garments

The Department appealed the refund claim sanctioned by the Asst. Commissioner of Central Excise, Mumbai-IV, to the Commissioner (Appeals), Central Excise, Mumbai Zone-I, resulting in the Order-in-Original being set aside. The case involved the payment of duty on Ready made garments, cleared under protest due to an erroneous belief of liability for Excise Duty. The Tribunal clarified that such garments were not subject to Excise Duty, leading to a refund claim by the assessee based on the loss incurred. The court stayed the impugned order pending appeal, recognizing the absence of unjust enrichment and recommending refund verification by the Range Superintendent.

---

---

Issues:
1. Refund claim sanctioned by Asst. Commissioner of Central Excise, Mumbai-IV.
2. Appeal by Department to Commissioner (Appeals), Central Excise, Mumbai Zone-I.
3. Payment of duty on Ready made garments.
4. Urgency in clearing goods under protest.
5. Tribunal judgment on liability for Excise Duty.
6. Claim for refund of duty paid.
7. Unjust enrichment and loss suffered by assessee.
8. Verification by Range Superintendent.
9. Stay on impugned order pending disposal of appeal.

Analysis:
1. The appellant had a refund claim of Rs. 4,08,202/- sanctioned by the Asst. Commissioner of Central Excise, Mumbai-IV. However, the Department appealed to the Commissioner (Appeals), Central Excise, Mumbai Zone-I, who allowed the appeal and set aside the Order-in-Original.

2. The issue at hand revolves around the payment of duty on Ready made garments by the appellants, even though the assessee was not liable to pay Excise Duty. Due to urgency, the assessee cleared the goods under protest. Subsequently, the Tribunal clarified that Ready made garments are not subject to Excise Duty. Consequently, the assessee claimed a refund of the duty paid, asserting that no duty was collected from their customers, resulting in a loss for the assessee.

3. The Assistant Commissioner, Central Excise, found no unjust enrichment as the assessee had suffered a significant loss. The Range Superintendent verified the bills and sales registers, leading to a recommendation for refund. The court acknowledged the prima facie satisfaction that the amount paid to the assessee should not be recovered pending the appeal's disposal. Therefore, the operation of the impugned order by the Commissioner (Appeals), Central Excise, Mumbai-I, was stayed until the appeal was resolved.

---