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Commissioner of Central Excise, Coimbatore Versus Aquasub Engineering

2015 (5) TMI 98 - CESTAT CHENNAI

Denial of refund claim - Unjust enrichment - Whether refund sanctioned allowed in the impugned order is hit by unjust enrichment or not - Held that:- Respondents opted for provisional assessment for the intermediate product manufactured by them and supplied to their own sister unit for manufacture of the final product "Power Driven Pumps" which is exempted from payment of excise duty. The period involved in both the cases is from 1.4.2000 to 31.3.2002. The Revenue has not brought any clear argum .....

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ined constant as the goods was exempted from excise duty - it is clear that respondents opted for provisional assessment for want of cost of raw materials consumed in the manufacture of exempted goods and placed much reliance on the certificate of the Chartered Accountant - respondents paid duty on the intermediate goods which are used in the manufacture of power driven pumps which are exempted from duty. There is no change in the price of the final product - Decided against Revenue. - Appeal No .....

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nalization assessment on the clearances of intermediate products viz. stampings, laminations, cast articles manufactured and cleared to their own sister unit on payment of duty by following valuation under Rule 8 of the Valuation Rules. The adjudicating authority has finalized the provisional assessment for the period from April 2000 to March 2001 in the first appeal and April 2001 to March 2002 and sanctioned refund of ₹ 8,93,519/- and ₹ 27,51,148/- respectively and credited to the .....

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ower appellate authority has relied photocopies of the invoice and there was no evidence to show that the price has not been changed. He also submits that Chartered Accountant certificate submitted is only a stereotype one and should not have been accepted by the lower appellate authority. He relied on the following case law :- 1) Mafatlal Industries Vs UOI 1997 (89) ELT 247 (SC) 2) Godrej Pacific Technology Ltd. Vs CC Mumbai 2003 (157) ELT 410 (Tribunal) 3) Philips Electronics India Ltd. Vs CCE .....

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are used for the captive consumption. He further submits that final products are exempted and there is no change for variation in price of the final product. He further submits that OIA dt. 11.11.2005 has dealt the issue in detail. He refers to paras 5,6,7, 8 of the OIA. He relied on the following case laws :- 1) Collector Vs Metro Tyres Ltd. 1997 (94) ELT A51(SC) 2) CCE, Chandigarh Vs Metro Tyres Ltd. 1996 (82) ELT 95 (T) 3) Swarup Fibre Industries Ltd. Vs CCE Meerut 2000 (120) ELT 510 (Tribuna .....

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ower Driven Pumps" which is exempted from payment of excise duty. The period involved in both the cases is from 1.4.2000 to 31.3.2002. The Revenue has not brought any clear arguments against the impugned order but only stated that there was no clear evidence of enhancement in price and there is no evidence to show that the price remained constant. They have only stated that Chartered Accountant certificate is not acceptable whereas I find from the impugned order dt. 11.11.2005 that the LAA .....

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ce was continuing irrespective of the fact that there was increase in the price in stamping, which went into the making of the final products. I find that the Department has not disputed the fact that the price of stampings was based on the cost of the raw materials used and the price of the pumps-sets was in turn based on the price of stampings.. The stampings having been subjected to provisional assessment, the presumption is that the Department was are of the appellant's method of calcula .....

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isation of assessment has in general resulted in excess payment of duty, it has also caused short payment in some types of stampings as in the case of models SM 132 6 and SM 1604 and the adjudicating authority has in fact allowed the adjustment of excess duty payment with the duty short paid on the said types before arriving at the duty amount eligible for sanctioning refund. In an ideal situation where the entire excess duty paid had occasioned adjustment towards the duty short paid in the cour .....

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buyer." 6. From the above, it is clear that respondents opted for provisional assessment for want of cost of raw materials consumed in the manufacture of exempted goods and placed much reliance on the certificate of the Chartered Accountant. In a number of decisions of Hon'ble Apex Court and High Court as well as Tribunal, the courts have consistently held that when there is no change in the price of the final product cleared and there is no increase in the rate of duty, the bar of unju .....

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