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CREDIT OF REFUND CLAIMS TO CONSUMER WELFARE FUND

Service Tax - By: - Dr. Sanjiv Agarwal - Dated:- 28-9-2015 - Statutory Provisions Section 12C of the Central Excise Act, 1944 provides as follows: (1) There shall be established by the Central Government a fund, to be called the Consumer Welfare Fund. (2) There shall be credited to the Fund, in such manner as may be prescribed - the amount of duty of excise referred to in sub-section (2) of section 11B or subsection (2) of section 11C or sub-section (2) of section 11D; the amount of duty of cust .....

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Refund of excise or customs duty or service tax, after it is sanctioned by adjudicating authority, will normally be transferred to Consumer Welfare Fund and will not be refunded to Assessee subject to the specified conditions. This section applies to Service Tax also. Accordingly, the amount specified under Section 73A (6) can only be transferred to Consumer Welfare Fund. Under the proviso of Rule 3 of the Consumer Welfare Fund Rules, 1992, any amount having been credited to the fund is to be pa .....

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Any person claiming refund of any duty of excise and interest thereon will be allowed such refund under section 11B of the Central Excise Act, 1944 if the refund claim is supported by the sufficient documentary proof and not covered under unjust enrichment. Judicial Pronouncements In Dabur India Ltd. v. CCE, Ghaziabad 2008 (4) TMI 112 - CESTAT NEW DELHI, where extra duty burden was not passed by the assessee but borne by themselves, it was held that the amount of refund was not credited to the .....

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lected by assessee from buyer and when goods were held to be non-excisable, such amount was recovered by buyer by raising debit note on assessee as per understanding between the parties, it was held that there is no unjust enrichment and as such, refund amount could not be credited to Consumer Welfare Fund. In CCE, Chandigarh v. Vardhman Industries Ltd. 2005 (8) TMI 543 - CESTAT, NEW DELHI, where cross appeals to Commissioner (Appeals) was filed against the order passed by adjudicating authority .....

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person, it was held that refund claim was not hit by unjust enrichment and as such, amount of refund could not be credited to Consumer Welfare Fund. In CCE, Chandigarh v. Goetze India Ltd. 2004 (9) TMI 552 - CESTAT, NEW DELHI, where assessee after calculating discount amount on actual turnover, issued credit notes to buyers and correctness of same remained unchallenged by Department, it was held that incidence of duty was not passed on to buyers, therefore, amount was not creditable to Consumer .....

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hment was not considered by Commissioner (Appeals), it was held that amount of excise duty not to be transferred to Consumer Welfare Fund under Section 11B of Central Excise Act, 1944 In CCE, Mumbai-I v. Inga Laboratories Pvt Ltd. 1997 (3) TMI 218 - CEGAT, MUMBAI, where incidence of duty not passed on to customers, it was held that refund if sanctioned would go to the Consumer Welfare Fund and not to the assessee. But that would be a consequence not of this appeal but because of subsequent chang .....

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o be deposited in Consumer Welfare Fund. In CCE v. IPCA Laboratories 2004 (10) TMI 194 - CESTAT, NEW DELHI, the Tribunal did not accept the contention of the Revenue that the refund claims of the respondents were hit by the principle of unjust enrichment since the respondents had produced the C.A. certificate which revealed that the incidence of duty was not passed on by them to the buyers. The Assessee had given the quantity discount to its buyers without charging even any price in respect ther .....

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