Appellant granted excise duty refund for solar power plant project

The Tribunal found in favor of the appellant, supporting their claim for a refund of excise duty under Notification No. 15/2010-CE for goods supplied for a solar power plant project. The Tribunal remanded the case to the Adjudicating Authority for verification of evidence showing that the duty incidence was not passed on to buyers. The appellant was granted the refund with interest and instructed to cooperate during the verification process.

---

---

Issues involved:
1. Refund claim of excise duty for goods supplied for installation and erection of solar power plant under Notification No 15/2010-CE.
2. Whether the refund granted has been rightly credited to consumer fund.

Analysis:

Issue 1: Refund claim of excise duty
The appellant received an order for supplying goods for a solar power plant project, seeking a refund of excise duty under Notification No. 15/2010-CE. The eligibility certificate was received after the commencement of supplies, resulting in duty payment of a significant amount. The appellant applied for a refund, which was initially rejected by the Adjudicating Authority. The Commissioner (Appeals) upheld the eligibility for refund but raised concerns about the passing on of duty incidence to buyers and the availing of Cenvat Credit. The appellant, dissatisfied, appealed to the Tribunal.

Issue 2: Crediting of refund to consumer fund
During the hearing, the appellant's counsel presented evidence from the company's balance sheet and an affidavit stating that the appellant did not collect excise duty from buyers. Commercial invoices were raised separately, and accounts were adjusted accordingly. A certificate from a subsidiary of the buyer confirmed the non-payment of excise duty. The appellant argued that there was sufficient evidence to prove that the duty incidence was not passed on to buyers, justifying the refund claim.

Judgment:
After considering the arguments, the Tribunal found that the appellant made a prima facie case of not passing on the duty incidence to buyers, supporting their claim for a refund under the notification. The Tribunal remanded the case to the Adjudicating Authority for verification of the buyer's certificate and directed a reasoned order within four months. The appellant was granted the refund with interest as per rules, with instructions to cooperate with the Adjudicating Authority during the process. The miscellaneous applications were also disposed of.

---