2015 (11) TMI 1333 - AT - Customs

Tribunal enforces refund denial citing unjust enrichment doctrine & burden of proof on duty passing.

M/s. Poddar Pigments Ltd. Versus C.C.E., Jaipur-I

M/s. Poddar Pigments Ltd. Versus C.C.E., Jaipur-I - TMI Issues:- Refund claim admissibility- Doctrine of unjust enrichment- Applicability of judicial pronouncements- Burden of proof on the appellant- Finalization of provisional assessmentRefund Claim Admissibility:The appeal was filed against an Order-in-Appeal that denied the refund claim of the appellant and instead ordered a credit to the Consumer Welfare Fund due to the doctrine of unjust enrichment. The appellant contended that the provisional assessment was finalized before the amendment incorporating the doctrine of unjust enrichment, and the burden was not passed on to buyers. However, the Departmental Representative argued that the doctrine of unjust enrichment became applicable as per Supreme Court judgments, emphasizing the need to comply with relevant laws even after finalization of assessment.Doctrine of Unjust Enrichment:The Tribunal noted that the doctrine of unjust enrichment, established by the Supreme Court, became law of the land upon pronouncement. The judgments cited by the appellant, not from the Supreme Court, were deemed insufficient. The Tribunal emphasized that the doctrine applies even in cases of finalization of provisional assessment, as supported by relevant legal precedents. The burden to prove that duty burden was not passed on rested on the appellant, and mere reduction in final product prices post-import was not sufficient to discharge this burden.Applicability of Judicial Pronouncements:The Tribunal analyzed various judgments cited by both parties, emphasizing the significance of Supreme Court decisions in establishing legal principles. It clarified that the invocation of the doctrine of unjust enrichment did not require specific statutory provisions, as it was a legal requirement for all duty refund cases post the Supreme Court's pronouncement.Burden of Proof on the Appellant:The Tribunal highlighted that the burden of proof regarding passing on the duty burden to others lay with the appellant. Merely showing a reduction in final product prices post-import was not conclusive evidence, as various factors could influence price uniformity. The Tribunal cited Supreme Court observations to support this stance.Finalization of Provisional Assessment:The Tribunal dismissed the appeal, finding no fault in the impugned order. It upheld the applicability of the doctrine of unjust enrichment, emphasizing the need for the appellant to establish non-passing of duty burden convincingly. The decision was based on legal principles established by the Supreme Court and relevant judicial interpretations, affirming the dismissal of the appeal.