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2012 (11) TMI 487 - AT - CustomsClaim for refund on excess duty paid rejected - unjust enrichment - ordered for credit the amount of refund to the consumer welfare fund on presumption of unjust enrichment - Held that:- As from the Cost Accountant's Certificate reproduced by assessee it can be seen that net realisation was Rs. 1.87 Crores approximately and appellants had suffered a loss of Rs. 4.44 Crores approximately. The Commissioner has rejected this claim on the ground that raw material cost was about 1.13 Crores whereas, the net realisation was Rs. 1.87 Crores and therefore, the realisation of finished goods is higher than the cost of finished goods. However, the cost itself shows that the value of materials consumed was Rs. 4.10 Crores and other costs have to be added. Only when the material imported is sold as such, the method adopted by the Commissioner can be acceptable. In a case like this, where raw material have been used for manufacture, what is required to be seen is the total cost incurred for the finished goods and not the difference between the cost of raw material and the price of finished goods without taking other expenses/raw materials/ inputs into account. Therefore, the method adopted by the learned Commissioner to reject the cost certificate cannot be sustained. The cost certificate clearly shows that the appellant's realisation from POY was less than the cost incurred by them for manufacture and therefore, it cannot be said that they have passed on the duty liability to the customers. As appellants have been able to show that they have not passed on the customs duty liability to the customers and therefore, are eligible for refund appellants have been able to show that they have not passed on the customs duty liability to the customers and therefore, are eligible for refund - in favour of assessee by way of remand.
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