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2024 (4) TMI 575 - CESTAT BANGALORERefund of Excess Customs Duty paid - principles of unjust enrichment - refund claimed transferred to consumer welfare fund alleging that the amount has been passed on to others and not borne by the appellant - HELD THAT:- The entire amount of duty and interest has been paid by the appellant after receiving certain amounts from M/s. Microsoft Corporation to meet the requirement of payment of duty. During the settlement proceedings, the Hon’ble Settlement Commission recorded the amount required to be paid and the amount deposited and also held that the excess amount, if any, be refunded to the assessee after adjusting the penalty amount. The authorities below transferred the refund amount to the Consumer Welfare Fund observing that the appellant has not borne the burden of the duty themselves but passed on to Microsoft Corporation; also the amount has not been shown as ‘receivable’ soon after payment of duty. Reading the agreement in its entirety, it is found that after the proceedings were initiated against the appellant, they have received certain amounts from the overseas suppliers of M/s. Microsoft Corporation to meet the requirement of payment of duty and interest, who advanced certain amounts with a condition that the excess amount, if any, after adjusting the duty and interest be refunded to M/s. Microsoft Corporation. The appellant, thus, cannot retain the excess amount with them in accordance with the said agreement. Consequently, the refund amount cannot be retained by the Appellant but has to be repaid to M/s. Microsoft as per the said Agreement. Also, it is found that the appellant could not reflect the excess amount refundable in their books of accounts before the order of the Settlement Commission but could reflect only after the Settlement Commission has recorded a finding to this effect, quantifying the settlement amount. There are no discrepancy of not showing the excess amount as receivables before the Settlement Commission’s order in their books of accounts which has been successively every year thereafter has been shown including for the financial year ending 31.3.2023. The impugned order is set aside - appeal allowed.
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