TaxTMI 
TaxTMI 
TaxTMI 
2020 (3) TMI 368
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.... position to prove that the excise duty paid by them was not passed on to the buyers. A show-cause notice was issued proposing for rejection of the refund claim for the period July, 2016 to March, 2017 alleging unjust enrichment. After due process of law they sanctioned the refund and ordered the amount to be deposited in Consumer Welfare Fund. Being aggrieved by such order, the appellant filed appeal before Commissioner (Appeals), who vide order impugned herein, upheld the order passed by the original authority. Hence, the appellant is now before the Tribunal. 2.0 On behalf of the appellant, the learned counsel Shri Raghavan Ramabhadran appeared and argued the matter. He submitted that at the time of clearance from the factory, the appellant adopts the Normal Transaction Value as per Rule 7 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 read with Section 4(1)(b) of the Central Excise Act, 1944 as the basis of Valuation of the excisable goods. The said Normal Transaction Value is based on declared NDP notified for each product. 2.1 Accordingly, at the time of clearance from the factory to depot, the appellant discharges excise duty on the ....
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....itted by the appellant about accounting treatment given to such transactions in the books of accounts; and (b) Uniformity in prices does not lead to inevitable conclusion that incidence of duty has not been passed on as held by the Hon'ble Apex Court in CCE vs Allied Photographics India Ltd. [2004 (166) ELT 3 (SC)]. 3.0 He adverted to para 6 of the Order-in-Original and submitted that the appellant had produced all relevant documents including the credit note/debit note as well as the Chartered Accountant certificate. The original authority has recorded the same but has not given due consideration to the documents produced by the appellant. The original authority has erred in relying upon a draft circular of the department. It is emphasized by him that the circular being draft circular does not having binding effect of a circular issued by the Board. 3.1 Even assuming the draft circular can be relied upon, the circular has to be applied in entirety. The department has relied on selective portion of the circular, viz., the portion of the circular which helps the department in denying the refund claim. 3.2 The appellant further submits that the manner of disclosure in the books o....
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....0) TMI 697-CESTAT-Chennai. 3.6 It is also added by him that since the appellant comes to know of the discounts at a later stage for the clearance of the goods, the price is adjusted by issuing credit notes/debit notes. So, there is no payment of money by way of cheque and, therefore, the accounts of the dealer as well as the appellant are adjusted by issuance of credit of credit notes/debit notes. The findings of the authorities below that the appellant has to produce payment receipt and bank statements in order to prove that the burden of duty has not been passed on to customers does not arise and is highly impractical. It is also submitted by him that though the appellants produced the Chartered Accountant's certificate along with the reply to the show-cause notice, the same has been disregarded noting that the Chartered Accountant has endorsed only his initials in the working sheets. He prayed that the appeal may be allowed. 4. On behalf of the department, the Learned Authorised Representative Shri S. Balakumar appeared and argued the matter. He submitted that the appellants have not produced any documents to show that the duty has not been passed on to another. He adverted to....
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....has not given worksheets attached to the said certificate. It is seen that wherever the excise duty has not been passed on to the buyer the same is noted in the work sheet. it is shown as discounts passed on which credit notes are allowed. One has to read the certificate issued by the Chartered Accountant along with worksheet. In such as case, it can be seen that only for the incidence where the duty has not been passed on to another, the appellant has claimed refund. Thus, on a perusal of the Chartered Accountant's certificate, I do not find any prima facie discrepancy, so as to reject the same. Another ground on which the rejection has been made is that the appellants have not produced payment receipts or bank statements pertaining to the transactions. In case of allowing discounts, the general practice is to adjust the payment by way of credit note/debit note. Thus, credit note/debit note itself would reflect the amount paid and the payments cannot be seen from the bank transactions or such other payment receipts. Therefore, the allegation that the appellant has not produced payment receipts and bank statements cannot sustain. 8. One other ground on which the rejection has been....