Refund claim on duty-paid High Speed Diesel allowed where documentary certificates sufficiently proved excise duty payment.

Documentary certificates from the supplier and manufacturer were treated as sufficient evidence that High Speed Diesel supplied from DTA had suffered Central Excise Duty and Educational Cess. Because the authorities below did not effectively examine or rebut those records, rejection of the refund claim for want of further proof was unsustainable. The refund issue was therefore resolved in favour of the assessee on the basis of unrebutted documentary evidence of duty payment.

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Issues: Whether the First Appellate Authority was correct in confirming the rejection of refund despite documentary material indicating payment of duty on the goods supplied.

Analysis: The refund claim related to High Speed Diesel supplied from DTA after withdrawal of the earlier facility for warehousing of petroleum products. The record contained certificates from the supplier and the manufacturer indicating that the goods were dispatched on payment of Central Excise Duty plus Educational Cess. The documents were not effectively examined or rebutted by the authorities below, and no specific dispute was raised against their contents. In those circumstances, the evidentiary material was sufficient to establish payment of duty, and rejection of refund merely for want of further proof was unsustainable.

Conclusion: The rejection of refund was held to be unsustainable and the issue was decided in favour of the assessee.

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