TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal Overturns Refusal of Duty Refund, Emphasizes Timing of Credit Notes</h1> The Tribunal set aside the Commissioner's order denying a refund to the appellants for excess duty charged, reimbursed through credit notes. The ... Refund - Unjust enrichment Issues:1. Denial of refund based on the issuance of credit notes to customers.2. Interpretation of passing on the duty burden and unjust enrichment.3. Verification of the timing of credit notes issuance and excess duty recovery.Analysis:1. The issue in this case revolves around the denial of a refund to the appellants due to excess duty charged from customers, which was later reimbursed through credit notes. The Commissioner (Appeals) relied on a precedent where it was held that once duty burden is passed on during goods clearance, refund claims cannot be made, citing Section 11B. However, the appellants argue that a High Court decision reversed the precedent, leading to a Tribunal decision allowing the refund. They contend that the basis for denial no longer stands, necessitating the setting aside of the Commissioner's order.2. Upon review, it was found that the Commissioner (Appeals) rejected the claim solely on the grounds of credit notes not proving the non-passing of duty burden, without considering other crucial aspects. The appellants assert that credit notes were issued simultaneously with invoices, ensuring that the net realization from customers matched the subsequently charged duty. They claim there was no excess duty recovery, supported by their accounting records. Additionally, they argue that the goods' price to the ultimate buyer remained unaffected, negating the transfer of duty incidence to subsequent buyers. Consequently, the matter was remanded to the original authority for verification on whether credit notes were issued concurrently with invoices and if there was no undue duty recovery from customers, crucial for determining unjust enrichment and refund eligibility.3. The appeal was disposed of with the directive to the original authority to investigate the timing of credit notes issuance and the absence of excess duty recovery from customers, emphasizing that if credit notes were issued simultaneously with duty debiting, refund denial on unjust enrichment grounds would be unfounded.
TaxTMI 
TaxTMI 
