2009 (6) TMI 530 - AT - Central Excise

Tribunal Rejects Revenue Appeal on Refund Claim Rejection

COMMR. OF C. EX. & CUS., GUNTUR Versus CRANE BETEL NUT POWDER WORKS

COMMR. OF C. EX. & CUS., GUNTUR Versus CRANE BETEL NUT POWDER WORKS - 2010 (251) E.L.T. 118 (Tri. - Bang.) Issues:Refund claim rejection based on doctrine of unjust enrichment.Analysis:The appeal was filed by the Revenue against the Order-in-Appeal regarding the mis-classification of 'Crane brand Betel Nut Powder' by the respondents. The respondents paid duty under protest on the cleared products. Following a favorable decision by the Supreme Court, they applied for a refund, which was rejected by the Adjudicating Authority citing unjust enrichment. The Commissioner (Appeals) set aside the rejection order, leading to the Revenue's appeal before the Tribunal.The Departmental Representative argued that the Adjudicating Authority rejected part of the refund claim, citing unjust enrichment due to the uniformity in prices before and after the dispute. The Counsel for the respondent contended that the duty was paid under protest for goods cleared during a specific period. They referred to a High Court judgment stating that if duty is paid post-clearance, unjust enrichment does not apply.The Tribunal considered the submissions and records, focusing on the refund claim for the period in question. The respondents paid the duty 'under protest' post-clearance, as identified in detailed challans. Citing a High Court judgment, the Tribunal emphasized that the burden of proving non-passing of duty to the buyer is a question of fact. The High Court's decision supported the Tribunal's conclusion that the duty payment post-clearance negated the presumption of unjust enrichment. Therefore, the Tribunal upheld the impugned order and rejected the Revenue's appeal.In conclusion, the Tribunal dismissed the Revenue's appeal, affirming the correctness and legality of the impugned order based on the doctrine of unjust enrichment.