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2012 (5) TMI 524 - AT - Central ExciseRecovery u/s 11D of Central Excise Act, 1944 along with interest u/s 11DD - collection of 8% amount under Rule 6(3) from the customers towards reversal of credit - Held that:- Admittedly, it is not the case of refund of duty “paid” inasmuch as no duty was ever paid by the appellants to the Revenue. As such the provisions of unjust enrichment will not apply, as rightly held by Commissioner (Appeals) - Considering the provisions of Section 11D, it is seen that the same are to the effect that every person who is liable to pay duty under this Act and the Rules made thereunder and has collected any amount in excess of the duty assessed or determined and paid on any excisable goods under this Act or the Rules made thereunder from the buyers of such goods in any manner as representing duty of excise shall forthwith pay the amount so collected to the credit of the Central Govt. In the present case, admittedly, the appellant was not liable to pay any duty of excise inasmuch as the goods were exempted. It is only that in the month of March, 2003, when their final product was brought under the duty, the respondents started collecting duty @ 8% from their customers. However, when they felt that such duty is not required to be paid to the Revenue, they returned the such collected duty to their customers by way of raising credit notes. In terms of the provisions of Section 11D, the respondents have collected any duty from their customers representing the same as excess duty. As such, demand in terms of Section 11D is not required to be confirmed against the respondents - Decided against Revenue.
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