PRIDE FORAMER Vs. CC (IMPORT)

JUDGEMENT

(1.) HEARD both sides. Under the impugned orders passed by the original authority and the lower appellate authority, refund claim of the appellants for an amount of Rs. 10 crores has been rejected leading to the present appeal before the Tribunal.

(2.) BOTH sides agree that the dispute relating to valuation of the impugned Rig imported by the appellants has since been settled in favour of the appellants by the order of the Hon'ble Supreme Court dated 14.2.2005. The appellants had earlier made a deposit of Rs. 10 crores through a pay order and had given a bond for Rs. 50 crores for taking release of the impugned Rig while the dispute regarding valuation of the same was pending adjudication by the Commissioner of Customs. The bond for Rs. 50 crores has since been cancelled and the grievance of the appellants is restricted to non -refund of the deposit of Rs. 10 crores.

(3.) WE find from the impugned order that the original authority has sanctioned the refund claim but she has credited the amount to the Consumer Welfare Fund under Section 27(2) of the Customs Act, 1952 holding that the appellants have not been able to prove that the duty burden has not been passed on to their customers. The lower appellate authority has also held that the burden of proof in this regard lies on the appellants and that since they have not satisfactorily discharged the same, he has upheld the order of the original authority crediting the refund amount to the Consumer Welfare Fund on the ground of unjust enrichment.