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2014 (8) TMI 535 - AT - Central ExciseDenial of refund claim - Unjust enrichment - discount given to their customers on the sale of vehicles on account of clearance of old stocks/prompt payment - appellant issued invoices of the gross amount and thereafter issued credit note on the discount applicable against each clearance - discount amount was having the components of duty paid by the appellant - refund claims were allowed but transferred to the Consumer Welfare Fund holding that the appellant has failed to pass the bar of unjust enrichment - Held that:- discount given by the appellant to their dealers regarding clearance of old stocks/prompt payment were in the knowledge of the dealers before the clearance of the vehicle, is not in dispute. The appellant was having a system that he invoices are to be raised on the pre-discounted assessable value of the vehicle and if any discount is entitled to the dealer that will be passed on to the dealers by way of credit notes. In that situation, the claim of the appellant is that duty component in the discount has not been passed on the dealers as the amount of discount has been credited in the account of dealers. where the entitlement discount has already known to the buyers, in that case, if discount is given by way of credit note, the bar of unjust enrichment is not applicable - Following decision of ADDISON & CO. Versus COMMISSIONER OF C. EX., MADRAS [2000 (11) TMI 146 - HIGH COURT OF JUDICATURE AT MADRAS] - Decided in favour of assessee.
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