Tribunal remands appeals for further examination on unjust enrichment before granting refund.

The Tribunal remands both appeals for further examination on the issue of unjust enrichment before granting the refund. The appellant's entitlement to the refund is acknowledged, but the Tribunal emphasizes the need to assess whether the duty incidence has been passed on to any other party, highlighting the importance of establishing unjust enrichment in both cases.

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Issues:
1. Appeal regarding suo moto re-credit amount in PLA after High Court order disallowance and subsequent Supreme Court decision.
2. Appeal concerning refund matter of the same amount taken as suo moto re-credit, focusing on unjust enrichment.

Analysis:
1. The first appeal (E/1402/2008) pertains to the appellant's suo moto re-credit in PLA after a High Court order disallowed their proforma credit, which was later allowed by the Supreme Court. The appellant argues that the cash payment made in compliance with the High Court order should be considered a pre-deposit, entitling them to suo moto re-credit without the need for a formal refund application. Citing various judgments, the appellant contends that the taking of credit in this manner is legally sound. The appellant emphasizes that unjust enrichment should not apply in the case of refunding pre-deposits. The Tribunal acknowledges the appellant's entitlement to the refund but stresses the need to examine the unjust enrichment aspect before granting it.

2. The second appeal (E/264/2009) concerns the refund of the same amount taken as suo moto re-credit, with a focus on the doctrine of unjust enrichment. The Revenue argues that any excise duty refund must adhere to Section 11B, which includes provisions for unjust enrichment. Citing relevant judgments, the Revenue asserts the applicability of unjust enrichment in the present case. The Tribunal agrees that the refund falls under Section 11B, making unjust enrichment applicable. However, it notes the appellant's persistent claim that unjust enrichment does not apply. To ensure justice, the Tribunal decides to remand both appeals to the adjudicating authority for further examination specifically on the unjust enrichment aspect.

In conclusion, the Tribunal allows both appeals to be remanded for a detailed assessment of whether the duty incidence has been passed on to any other party, emphasizing the importance of establishing unjust enrichment before granting the refund.

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