2006 (12) TMI 349 - AT - Central Excise

Summary

Issues Involved: Refund claim of Educational Cess, unjust enrichment clause, acceptance of Chartered Accountant's certificate.

Refund Claim of Educational Cess: The Appellate Tribunal CESTAT, Bangalore addressed the issue of a refund claim of Rs. 30,000 paid by the assessee towards Educational Cess on 3000 MTs of molasses. The Tribunal noted that the alcohol division had not passed on the incidence of education cess to the ultimate buyers, as certified by a Chartered Accountant's certificate. The Tribunal found no evidence presented by the Department to support that the incidence of education cess had been passed on to the buyer. Consequently, the Tribunal held that the refund claim was not barred by the unjust enrichment clause and allowed the appeal, setting aside the order passed by the Assistant Commissioner, Customs & Central Excise, Nellore Division.

Unjust Enrichment Clause: The Revenue contended that the Education Cess should not be refundable to the assessee unless they proved that the incidence of the said Cess had not been passed on to the buyer. The Department expressed reluctance to accept the Chartered Accountant's certificate provided by the appellant.

Acceptance of Chartered Accountant's Certificate: The Tribunal upheld the decision of the Commissioner (A) in accepting the Chartered Accountant's certificate as evidence that the Cess had not been passed on to the buyer. It emphasized that a Chartered Accountant cannot issue an incorrect or false certificate, as doing so would have penal consequences. The Tribunal concluded that the certificate had evidential value and must be accepted. Therefore, the appeal by the Revenue was rejected based on the validity of the certificate and the lack of merit in their argument.