Order date – 25 August 2022

Facts – 

• The appellant, M/s. Jakap Metind Pvt. Ltd., was being investigated and during that they paid excise duty on burning loss beyond permissible limit but got a favorable order at the Tribunal level in the appeal preferred by it that such amount was not payable. 
• Holding the same to be on deposit, Appellants sought for its refund of Rs.10,78,311/- that was rejected by the Adjudicating Authority as time barred and also hit by unjust-enrichment.
• The appeal time bar issue was addressed in favour of the Appellant, refund was allowed but amount was not paid to the Appellant but directed to be deposited in the Consumer Welfare Fund of India on the ground that unless the deposited amount shown in the Profit & Loss Account of the Appellant as amount receivable, doctrine of unjust enrichment would be established and therefore the appellant failed to cross the bar of unjust-enrichment.
• Aggrieved the appellant filed an appeal.

Issue – 

• Whether denial of refund to the appellant on the ground of unjust enrichment is justifiable?

Order – 

• It was held by the Tribunal drawing reference to Suvidhe Ltd. vs. Union of India, that even if the amount has been shown on the ‘expenses side’ that does not mean that the presumption that the burden had been passed to the consumer had been established.
• Also there is a clear finding in Commissioner of Central Excise, Pune vs. Rocket Engineering Corporation Ltd. to the effect that when the amount had been deposited in the course of investigation after the clearance of excisable goods, bar of unjust enrichment would not be applicable.
• The Tribunal held that the findings of the Commissioner (Appeals) that unless the deposited amount is shown in the Profit & Loss Account of the Appellant as amount receivable, doctrine of unjust enrichment would be established, is erroneous.
• Therefore the appeal was allowed and the Tribunal modified to the extent that the refund amount sanctioned and directed to be deposited in the Consumer Welfare fund of India is to be refunded to the Appellant. Respondent-Department is directed to pay the same amount of Rs.10,78,311/- with applicable interest.