CCE Vs. CHANDILYA CHEMICALS

JUDGEMENT

(1.) The issue involved in this appeal filed by Revenue is whether the refund claim of duty paid by M/s. Chandilya Chemicals is hit by principle of unjust enrichment.

(2.) Shri S. Kannan, ld. DR, submitted that respondents had removed the goods on payment of duty at higher rate after exceeding the limit of Rs. 30 lakhs; that as they had paid duty at the higher rate inadvertently they had claimed refund of the duty paid in excess which was ordered to be deposited to Consumer Welfare Fund by the Asst. Commissioner who reached the conclusion that respondents had passed on the incidence of higher duty to their customers; that the Commissioner (Appeals), however, allowed their appeal holding that duty payable is only to be taken into consideration as has been passed on to the customers.

(3.) Ld. DR further submitted that the Commissioner (Appeals) has himself given a finding that duty element has been passed on to the buyers and once the duty element has been passed on, then it goes without saying that duty actually paid must have been passed on to the buyers. Finally, he mentioned that it is the requirement of Section 12A of Central Excise Act that amount of duty paid has to be shown separately which form part of the price which has not been shown in the present matter.