Refund of Special Additional Duty upheld where documentary and accounting evidence showed no passing on of duty incidence.

Refund of Special Additional Duty on imports was held admissible where the record showed the duty incidence had not been passed on to buyers. The invoice indicated the SAD was not available as credit to purchasers, and the claimant's status as an unregistered trader meant no cenvatable invoice could be issued. A Chartered Accountant's certificate and the balance-sheet treatment of the amount as receivable further supported non-passing of incidence. On that basis, the bar of unjust enrichment was not attracted, and the refund claim was allowed with consequential relief.

---

---

Issues: Whether the claimant was entitled to refund of Special Additional Duty paid on import, and whether the bar of unjust enrichment applied.

Analysis: The invoice showed that the Special Additional Duty was not available as credit to the buyers. The claimant was only a trader and was not registered with Central Excise, so no cenvatable invoice could be issued to purchasers. A Chartered Accountant's certificate and the balance-sheet treatment of the amount as receivable also supported the claim that the duty incidence had not been passed on.

Conclusion: The bar of unjust enrichment was not attracted and the refund claim was admissible.

Final Conclusion: The impugned order was set aside and the refund claim was allowed with consequential relief.

Ratio Decidendi: Where the record shows that SAD incidence was not passed on to buyers, supported by documentary evidence and accounting treatment, refund cannot be denied on the ground of unjust enrichment.

---