Doctrine of unjust enrichment in refund claims: documentary evidence showed duty incidence was not passed on, so refund stood.

Refund of duty was sustained because the record cumulatively showed that the incidence of duty had not been passed on to buyers. The authority relied on comparative sale price statements, post-import sale invoices showing lower prices, excise certificates, end-use evidence, balance sheet entries, bills of entry, high seas sale declarations, and a chartered accountant's certificate to conclude that the imported spin finish oil was insignificant in the manufacture of polyester filament yarn and did not form part of the sale price. The appellate order did not displace those findings or identify any perversity in the original decision, so the doctrine of unjust enrichment was held inapplicable and the refund remained payable to the assessee.

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Issues: Whether the refund claim was hit by the doctrine of unjust enrichment and whether the assessee had discharged the burden of showing that the incidence of duty had not been passed on to the buyers.

Analysis: The refund was examined on the basis of the comparative sale price statement, sale invoices showing lower post-import prices, certificates from the Central Excise authority, end-use certificate, no proforma credit certificates, balance sheet, bills of entry, declaration regarding high seas sale, and the Chartered Accountant's certificate furnished in compliance with the public notice. The conclusion recorded by the sanctioning authority was that the cost of the imported spin finish oil was insignificant in the manufacture of polyester filament yarn, that it did not form part of the sale price, and that the materials on record cumulatively established that the duty burden was not passed on. The appellate order setting aside the refund did so without dislodging those findings and without recording any perversity in the original order.

Conclusion: The doctrine of unjust enrichment was held not to apply, and the refund claim was upheld in favour of the assessee.

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