Excise duty refund on free units and trade discount sustained where invoices did not prove passing on of duty burden.

Refund of excise duty on free units and trade discount was treated as admissible where the scheme was pre-declared, duty had been paid at the factory stage on the full quantity, and later depot invoices showed only a composite commercial price. The absence of a separate break-up of basic value and duty in those invoices did not, by itself, prove that the duty burden had been passed on. As the record did not establish unjust enrichment, the deduction relatable to free units and trade discount was allowed and the refund was sustained.

---

---

Issues: Whether refund of excise duty paid on free units and trade discount was admissible when depot commercial invoices showed only a composite price and did not separately indicate the duty element, and whether the bar of unjust enrichment applied.

Analysis: The refund arose from clearances made under a pre-declared free unit and discount scheme. The evidence showed that duty had been paid at the factory stage on the entire quantity, including the free units, while the goods were subsequently sold from depots under commercial invoices reflecting the scheme. The absence of a separate break-up of basic value and duty in the commercial invoices did not, by itself, establish that the duty burden had been passed on. The record also did not show that the revenue had discharged the burden of proving such passing on. On these facts, the deduction relatable to free units and trade discount was held to be admissible and the doctrine of unjust enrichment was not attracted.

Conclusion: The refund was held to be admissible and the Revenue's challenge to the grant of refund failed.

---