In Customs Appeal No. 30010 of 2023 - CESTAT - CESTAT (Hyderabad) rules in favour of Revenue, finds Sachdev Overseas Fitness Pvt. Ltd. failed to provide sufficient evidence to clear the bar of unjust enrichment
Member A.K. Jyotishi (Technical) [01-06-2023]

Read Order: Pr. Commissioner of Customs Central Tax, Hyderabad v. Sachdev Overseas Fitness Pvt Ltd and Ors.

Chahat Varma

New Delhi, June 5, 2023: The Hyderabad bench of the Customs, Excise and Service Tax Appellate Tribunal has ruled that Sachdev Overseas Fitness Pvt. Ltd. (respondents) failed to provide sufficient evidence before the original authority to clear the bar of unjust enrichment.

The Department had filed the present appeals to determine whether the refund claim made by the respondents, seeking a refund of excess Customs Duty paid, was hit by the bar of unjust enrichment.

The Tribunal referred to Philips Electronics India Ltd v. Commissioner of C.Ex [LQ/CESTAT/2010/1597] and noted that onus was on claimant of refund to produce sufficient and tangible evidence, including CA’s certificate, if they so wish, but merely CA’s certificate to the effect that the incidence of duty element, in respect of which refund is being claimed, cannot be the basis for conclusive evidence to the same.

Barring CA certificate, the Tribunal observed that the respondents had failed to provide sufficient evidence to support their claim for refund. On the other hand, the Department had provided evidence suggesting that the respondents had treated the duty as an element of expenditure and not as receivables in their books of account. Additionally, the respondents were aware that reassessment would result in a refund and knew the exact amount of refund they would be entitled to. Despite this, they did not show the refund amount as receivables in their books of account.

Consequently, the Tribunal restored the order of the Original Authority that had invoked the applicability of bar of unjust enrichment.