Unjust enrichment in refund claims: uncontroverted certificate showing duty not passed on supports refund to the assessee.

A refund claim was held not to be barred by unjust enrichment where the assessee produced an uncontroverted Chartered Accountant's certificate showing that the excess duty had not been recovered from customers. The Tribunal applied its earlier view that such evidence, if not disputed by the Revenue, is sufficient to establish that the duty burden was not passed on. On that basis, crediting the refund to the Consumer Welfare Fund was unsustainable, and the assessee was entitled to refund with consequential relief.

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Issues: Whether the refund claim was barred by unjust enrichment and was required to be credited to the Consumer Welfare Fund instead of being paid to the assessee.

Analysis: The refund dispute turned on whether the incidence of duty had been passed on to customers. The assessee produced a Chartered Accountant's certificate stating that the excess duty had not been recovered from customers, and the Revenue did not challenge that certificate. The Tribunal relied on its earlier decisions holding that such a certificate, when uncontroverted, must be accepted as proof that the duty burden was not passed on. On that basis, the Commissioner (Appeals) ought not to have directed credit of the refund to the Consumer Welfare Fund, particularly when the supporting material and relevant circular were already before him.

Conclusion: The refund was not hit by unjust enrichment and the direction to credit the amount to the Consumer Welfare Fund was unsustainable. The assessee was entitled to refund with consequential relief.

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