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2019 (12) TMI 279 - CESTAT CHENNAIRefund of excess duty paid - price variation clause - goods were valued at 110% of the cost of production - refund was rejected on the ground of unjust enrichment - HELD THAT:- The appellant had initially paid the Excise Duty on the estimated cost, which was determined to be more than the actual cost, and accordingly, the duty element on the excess cost alone was claimed as refund. The Supply Order clearly mandates that the tax, duty and other levies shall be borne by the Ministry of Defence, which in fact was initially borne by the appellant and later on recovered from the Ministry of Defence. The appellant which is engaged in the manufacture of rail coaches, established in 1952, is owned and operated by the Indian Railways and by virtue of this, it is a Government of India undertaking and as such, the ratio of the decision of the Hon'ble jurisdictional High Court in the case of M/s. Sescot Sheet Metal Works Ltd. Vs. CESTAT, Chennai [2015 (4) TMI 386 - MADRAS HIGH COURT] can be applied to underline the fact that it cannot be said that the appellant was unjustly enriched and that thereby, the unjust enrichment attributed to the appellant has to necessarily fail. The material takeaway is that the mischief of unjust enrichment could not be attributed to the appellant and the reason given for denying the refund being unjust enrichment, must fail - refund is to be allowed. Appeal allowed - decided in favor of appellant.
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