VXL INSTRUMENTS LTD. Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) THIS is an appeal against the order of the Commissioner (Appeals) No. 168/2010, dated 30 -8 -2010 by which order of the original authority crediting the refund of Rs. 7,14,998/ - to the Consumer Welfare Fund stands upheld.

(2.) HEARD both sides.

(3.) THE relevant facts, in brief, are that the appellants are 100% EHTP unit engaged in the manufacture and export of computers, their parts and accessories falling under Chapter Heading 8471, 8473 and 8429 of the First Schedule to the Central Excise Tariff Act, 1985. Notification No. 6/2006 -C.E., dated 1 -3 -2006 reduced the duty on goods falling under Chapter Heading 8471 from 16 to 12%. The assessee was permitted to sell certain quantity of final products in DTA based on their export performance. The Jurisdictional Customs/Excise authorities vide communication dated 14 -12 -2007 directed the assessee that the concession provided under Notification 6/2006 -C.E., dated 1 -3 -2006 was not applicable to them and that they have to pay duty at the rate of 16%. This instruction was subsequently reversed vide the communication dated 14 -6 -2008 holding that they were eligible for concessional rate of duty on DTA sales. Meanwhile, the assessee paid duty under protest on the higher rate @ 16.48% as against 12.36% as claimed by them. The appellant claimed refund which stands accepted on merits but credited to Consumer Welfare Fund on the ground of unjust enrichment. Commissioner (Appeals) has upheld the order of the original authority rejecting the cash refund.