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2014 (8) TMI 698 - AT - Central ExciseDenial of refund claim - Unjust enrichment - Duty paid twice - Notification No. 62/2002-CX dated 31.12.2002 - Held that:- Appellants have paid duty on Ethanol and did not take credit thereof. It is also not in dispute that the appellants cleared EBMS on payment of duty at the rate fixed by the Govt. of India. The fact that the duty has been paid twice on Ethanol is also not in dispute. The dispute in this case is on issuance of letter by the department on 21.11.2002 wherein their activity on blending was held that the same does not amount to manufacture. If, at that time, the appellants were told that their activity amounts to manufacture, the dispute could not have arisen as on today. In this context of that it cannot be said that the appellants are required to pay duty twice. As the appellants have claimed refund of excess duty paid on Ethanol portion at the time of clearance of EBMS or they are entitled for CENVAT credit at the time of procurement of Ethanol, the consequences will be the same as they are entitled to get the refund of excess duty borne by them. As the facts of double payment of duty on Ethanol is not in dispute at any stage and the dispute has been arisen on the wrong understanding of the Revenue while granting them permission for blending the Ethanol with MS. Therefore, following the principles of natural justice we hold that the appellants are entitled for refund claim for duty paid on Ethanol - unjust enrichment is not applicable to the facts of this case - appellants are entitled for refund claim - Decided in favour of assessee.
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