1997 (4) TMI 97 - SCH - Central Excise

Supreme Court Upholds Mafatlal Industries Precedent on Excise Duty Refunds

The SC dismissed the revenue's appeal, following the Mafatlal Industries precedent. No refund is granted if excise duty is passed on to buyers. The ... Refund of excise duty - passing on of excise duty to buyers - no refund where excise duty burden passed to buyers - academic interest of the disputeRefund of excise duty - passing on of excise duty to buyers - no refund where excise duty burden passed to buyers - Whether a refund of excise duty is payable where the manufacturer has passed on the burden of duty to the buyers. - HELD THAT: - The Court applied the legal principle laid down in Mafatlal Industries v. Union of India and held that where the manufacturer has passed on the burden of excise duty to the buyers, no refund is to be granted. In the present case it was admitted that the manufacturer had passed on the duty burden to the buyers; accordingly, the question of granting a refund does not arise and is rendered academic. The Court did not express any opinion on the merits of the underlying claim decided by the Tribunal. [Paras 1]No refund is payable where the manufacturer has passed on the excise duty to the buyers; the refund question is academic in the present case.Final Conclusion: The appeal is disposed of without disturbing the Tribunal's order; however, in view of the principle that no refund is payable where the excise duty burden was passed on to buyers, no refund arises here. No opinion was expressed on the merits and there is no order as to costs. The Supreme Court dismissed the revenue's appeal against the Tribunal's order, citing the Mafatlal Industries case. No refund is to be given if excise duty burden is passed on to buyers. The appeal was disposed of without disturbing the Tribunal's order, with no opinion on the case's merits. No costs were awarded.