2010 (2) TMI 1031 - AT - Central Excise

Summary

Issues:
1. Whether the authorities erred in crediting the refundable amount to the Consumer Welfare Fund based on the duty burden passed on to consumers.

Analysis:
The main issue in this case was whether the authorities were correct in crediting the refundable amount to the Consumer Welfare Fund on the basis that the duty burden had been passed on to consumers. The adjudicating authority observed that the duty payment under the compounded levy scheme was determined irrespective of the actual value and clearances of fabrics in a given time period. It was noted that there might not always be a direct connection between the actual clearances of goods and the passing off of duty burden. The Commissioner (Appeals) confirmed this decision, emphasizing that the price of goods remaining the same did not necessarily mean that the duty burden had not been passed on to the buyers.

The appellant argued that despite the exclusion of the gallery portion, the price had remained constant, indicating that the duty liability was not transferred to consumers. However, the records did not provide specific data to support this claim. The lack of detailed information regarding the breakdown of prices before and after the exclusion of the gallery made it challenging to accept the appellant's contentions. The Commissioner (Appeals) relied on a clear decision and emphasized that without sufficient data, mere assertions about price changes were not enough to prove that the duty burden had not been passed on to consumers.

Ultimately, the burden of proof regarding the passing on of duty burden rested with the appellants, which they failed to discharge. Both the adjudicating authority and the Commissioner (Appeals) conducted a detailed analysis of the available materials on record and concluded that the appeals lacked merit. As a result, the appeals were dismissed, and the refundable amount was credited to the Consumer Welfare Fund.