1999 (2) TMI 368 - AT - Central Excise

Tribunal affirms decision on excise duty refund claim, burden of proof on duty incidence passed to customers upheld

The Tribunal upheld the decision of the Collector (Appeals) in a case concerning a refund claim for central excise duty on certain tyres. The Department's ... Refund - Unjust Enrichment Issues involved: Appeal against order of Collector of Central Excise (Appeals) regarding refund claim for central excise duty on ADV Hand Driven Cart tyres.Summary:The respondents filed a refund claim for central excise duty paid, stating that certain tyres were exempted from duty prior to a specific date and no duty was payable as per a notification. The Department contended that the tyres were chargeable to duty and no refund was admissible as duty incidence had been passed on to buyers. The Assistant Collector rejected the refund claim, but the Collector (Appeals) set aside this decision, stating the claim was not time-barred and duty incidence had not been passed on. The Department appealed this decision.During the hearing, the Department argued that excise duty, being indirect tax, is passed on to consumers unless proven otherwise. The Collector (Appeals) had allowed the appeal based on the reasoning that the invoice price did not include duty.The respondents' representative referred to previous Tribunal cases where it was held that if the invoice showed a composite price without duty separately indicated, it indicated that duty incidence had not been passed on to customers. The Tribunal and subsequently the Supreme Court upheld this view. Considering these precedents, the Tribunal rejected the Department's appeal, as the burden to prove duty incidence being passed on had been discharged by the assessee.In conclusion, the Tribunal upheld the decision of the Collector (Appeals) based on previous Tribunal and Supreme Court judgments, rejecting the Department's appeal.