Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2011 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (4) TMI 900 - AT - Central ExciseCable Jointing Kits (CJK) manufactured - whether the respondents had right to realise the duty from the buyers on CJK when such goods were not manufactured and were not dutiable as held by the Tribunal and affirmed by the Apex Court - Held that:- As during the period of dispute though no duty was payable on the CJK, the respondents paid the duty on the same. There is no dispute that the duty so paid by the respondent had been recovered from their customers. It is not the case of the department that the amount collected by the respondent as duty in respect of the clearances of CJK from their customers was not paid to the Government since the amount collected in respect of sale of CJKs as excise duty was paid by the respondent to the Government and, as such, there is no contravention of the provisions of Section 11 D, the question of asking them to pay this amount to the Government does not arise. Entitlement to adjustment of the duty payable on the intermediate products against the duty paid on CJKs which were not dutiable - disallowance on unjust enrichment - Held that:- As the amount representing duty collected by the respondent was paid by them to the Government and by the process of adjustment, it is not being refunded to the respondent. The process of adjustment of duty paid on CJK on which no duty is payable, towards duty liability in respect of the intermediate products, on which duty is payable, amounts to just changing the head under which the duty had been paid and so long as the duty is not being refunded to the respondent, there would not be any unjust enrichment - there is no bar on adjustment of the duty paid in respect of the non-excisable item, towards the duty liability in respect of the dutiable product and no unjust enrichment takes place as the amount paid by the respondent to the Government as excise duty on CJK, has remained with the Government - in favour of assessee.
|