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M/s IOC Ltd. Versus Commissioner of Central Excise, Meerut

2016 (4) TMI 145 - CESTAT ALLAHABAD

Refund claim - applicability of doctrine of unjust enrichment - whether duty on MS & HSD was required to be paid at transaction price recovered from the dealers or the same should be based on prices prevailing at Partapur depot during the relevant period - Held that:- Appellant paid excess duty on an amount which was charged from the dealers in Partapur area. However, for the supplies made to Noida & Bulandsahar area, where lower transaction price was agreed upon as compared to Partapur, duty wa .....

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is also observed that CBEC Circular dated 30/6/2000 (Para-5) also conveys the same interpretation regarding new Section 4 of the Central Excise Act, 1944. Therefore, appellant on merits has correctly filed the refund claims alongwith requisite documents and calculations. - So far as applicability of unjust enrichment once documentary evidences/certificates have been produced by the appellant to the effect that excess duty paid has not been recovered from the dealers then it has to be held th .....

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ers. It is not the case of the Revenue that excess duty paid by the appellant has been included in the manufacturing expenditure and not reflected as an amount receivable in their books of accounts. In the absence of any such counter, it is held that unjust enrichment is not applicable to the existing facts on records. - Appeal No. E/4005/2006-EX[DB], E/208/2007-EX[DB] - Final Order Nos. A/70031-70032/2016 - Dated:- 12-1-2016 - Anil Choudhary, Member (J) And H. K. Thakur, Member (T) For the Appe .....

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and 236/05 dated 30/12/2005. That on appeals first appellate authority rejected their appeals under a common Order-in-Appeal dated 29/5/2006 as the issue involved in the appeals was the same. It was argued by the Learned C.A. that appellant is registered with the Central Excise authorities at Partapur as well as at Mathura for payment of excise duty. That normally the customers in Noida & Bulandsahar Area are given supplies from appellants Mathura Depot but due to operational constraints dur .....

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sell the Motor Spirit (MS) and High Speed Diesel (HSD) to dealers at the agreed prices in those areas. That necessary certificates from the customers/Chartered Accountants, ledger account, invoices, returns etc. were also made available to the lower authorities to substantiate that excess duty paid by the appellant was not at all recovered from the dealers in Noida and Bhubaneswar Areas. That lower authorities have wrongly held that duty on MS & HSD required to be discharged at the prices p .....

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rs/dealers as per invoices, has been certified by the dealers to be not paid and that unjust enrichment is not applicable as per larger bench judgment of S. Kumars Ltd. Vs. Commissioner of Central Excise, Indore [2003 (153) ELT 217 (Tri.-LB)]. 3. Shri Pawan Kumar Singh, Supdt. (A.R.) appearing on behalf of the Revenue argued that transaction value prevailing at Partapur has to be taken for the purpose of payment of duty which has been recovered from the customers/dealers. That on merits, appella .....

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required to be paid at transaction price recovered from the dealers or the same should be based on prices prevailing at Partapur depot during the relevant period. (ii) Whether doctrine of unjust enrichment is applicable to the present refund claims. 5. So far as point mentioned at (i) of para 4 above is concerned, first appellate authority has held that transaction value prevailing at Partapur has to be taken into consideration for payment of duty and was correctly done. First appellate authorit .....

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from the dealers in Partapur area. However, for the supplies made to Noida & Bulandsahar area, where lower transaction price was agreed upon as compared to Partapur, duty was paid at higher value but duty at lower value was recovered from the dealers of Noida & Bulandsahar at the agreed upon price. The duty for such clearances was thus required to be paid at the agreed upon price (Transaction value) and not the value at which duty was paid. Transaction value under the existing Section 4 .....

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n the concept of 'Transaction Value, each transaction is important. Therefore, the Transaction Value is to be determined for the clearances after 1/7/2000. As far as the period after 1/7/2000 is concerned, the value for assessable purpose is the Transaction Value, The Transaction Value is the value for each transaction. The concept of Transaction Value is entirely different from the concept of normal value. While the normal value can be notional, the Transaction Value is the actual amount tr .....

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rances, 70% should be added to the invoice value is not accepted. We reiterate our finding to say that for the period prior to 1/7/2000, the Commissioner has to decide the normal price for each variety of goods and he can adopt the same for all the clearances. It does not mean that the invoice value has to be accepted. The normal price has to be determined based on the evidence available, in accordance with Section 4 read with the Central Excise Valuation Rules". It is also observed that CB .....

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