Tribunal grants customs duty refund on unjust enrichment grounds

The Tribunal set aside the impugned order and allowed the appeal for the refund of customs duty on the grounds of unjust enrichment. The appellant demonstrated through a Chartered Accountant's Certificate and balance sheet that the excess duty was not passed on to customers. The Tribunal found the initial rejection based on the absence of the amount in later balance sheets to be factually incorrect, as the balance sheet clearly indicated an amount due as a refund. Consequently, the Tribunal ruled in favor of the appellant, granting the refund with consequential relief.

---

---

Issues:
Refund of customs duty on the grounds of unjust enrichment.

Analysis:
The appeal was filed against the rejection of a refund claim amounting to Rs. 1,28,979/- paid in excess on 31.03.2012, based on the concept of unjust enrichment. The appellant provided a Chartered Accountant's Certificate and a balance sheet to demonstrate that they had not passed on the excess duty to customers. The first appellate authority initially rejected the claim citing the absence of the amount in the balance sheet for the FY 2013-14 and 2014-15. However, upon review, the Tribunal found this reasoning factually incorrect as the balance sheet clearly indicated an amount of Rs. 3,54,646/- under "Amount due as Refund of excess duty paid." Consequently, the Tribunal concluded that the appellant had not passed on the excess duty to buyers, rendering the impugned order unsustainable. Therefore, the Tribunal set aside the impugned order and allowed the appeal with consequential relief.

---