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2014 (7) TMI 614 - AT - Central ExciseDenial of refund claim - Unjust enrichment - Issue of credit notes - readymade garments - element of duty in the purchase order - Held that:- Certificate has been filed by the customer of the appellant stating that they have not borne the liability which have been originally passed on to them and that they have not passed on the liability to their customers. - in this case the goods being exempt, the question of the 3rd party claiming refund just does not arise. In this case, a third party or the ultimate customer could not have filed refund claim at all with the Department since the invoices would not show excise duty element at all. The ultimate customer In this case would not know what is the amount of refund to be claimed by him and whether there was any excise duty paid by his supplier at all. The assessee in this case after analyzing there was excess charge made by them indicated in their mail the price at which purchase order was issued actually related to the bigger boxes and there was a mistake on the part of the customer and the actual prices was only ₹ 5.20 per box + taxes and other levies. Apparently, both the sides agreed that there was a mistake in the purchase order and both sides had understood the cost of ₹ 5.20/- as the transaction value and there was mistake in the documentation. Therefore, the Commissioner's observation that the appellant has to show that in the costing of the product element of excise duty has not been taken into account also is not relevant in this case if both the parties had clearly understood that the value of the box would be only ₹ 5.20 and there was a mistake in the purchase order and raising of invoices. In such a case, naturally the costing would not have proceeded on the basis that the cost of the box was higher. - Decided in favour of assessee.
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