2007 (7) TMI 525 - AT - Customs

Tribunal overturns refund rejection due to unjust enrichment, accepts evidence, grants duty refund

The Tribunal allowed the appeal, granting the appellants the refund of excess duty paid. The rejection of the refund claim on the ground of unjust ... Refund - Unjust enrichment - Evidence Appeal against rejection of refund claim where Commissioner (A) found the assessee failed to discharge burden that the duty 'has not been passed on to the customers' and denied refund for alleged unjust enrichment. Appellant produced a Chartered Accountant's certificate certifying, after verification of books and pre- and post-sale invoices, that the 'excess duty paid has not been passed on to the customers.' Reliance placed on precedents holding that 'once the Chartered Accountant has certified with regard to the non-passing of the duty element to the customers then the same is required to be accepted.' Revenue argued that a CA certificate is insufficient without entire evidence and invoked the Larger Bench in SRF Ltd., which held that 'something more is required to be proved' when assessing price uniformity issues. Tribunal found SRF limited to uniformity-of-price issues and held the CA certificate here met the required proof on non-passing of duty. Commissioner (A)'s rejection was held unjustified; refund claim allowed with consequential relief.