2003 (10) TMI 199 - AT - Central Excise

Appeal granted for Central Excise duty refund on physician samples exemption eligibility and free distribution

The Tribunal allowed the appeal filed by Sarabhai Chemicals P. Ltd., determining that the refund of Central Excise duty paid for physician samples was ... Refund - Unjust enrichment - Free distribution Issues: Refund of Central Excise duty paid for physician samples, unjust enrichment, remand order validity, exemption eligibility, appeal outcomeIn this case, the appeal was filed by Sarabhai Chemicals P. Ltd. against the order of remand passed by the Commissioner (Appeals) Central Excise & Customs, Vadodara, regarding the refund of Central Excise duty paid for physician samples exempt under Notification No. 48/77. The impugned remand order was challenged by the Revenue, citing reasons of unjust enrichment and a related appeal in the Supreme Court. The appellants argued that unjust enrichment does not apply as the physician samples were distributed free, eliminating the possibility of passing on duty burden to buyers. The Counsel highlighted the Supreme Court's decision in a similar case [1999 (107) E.L.T. 579 (S.C.)]. The Tribunal examined the case, noting the free distribution of samples and the clear exemption eligibility, concluding that the refund was rightfully granted, and the appeal against it lacked merit. Additionally, during the appeal process, an order was passed by the original authority in line with the remand order, which was also appealed and disposed of similarly.The Tribunal found the original refund order to be correct and legal, leading to the allowance of the present appeal. Consequently, the orders passed following the impugned order were deemed unsustainable in light of the Tribunal's decision to allow the appeal, thereby resolving the issue of refund eligibility for the Central Excise duty paid for physician samples effectively.