The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) comprising Sulekha Beevi CS, Judicial Member and Vasa Seshagiri Rao, Technical Member remanded back matter to consider refund afresh on basis of CA certificate and audited financial statement.
The appellant, M/s. Mak Controls & Systems (P) Ltd, filed refund claim for the refund of central excise duty in regard to “Service Air Trolley” supplied to Indian Air Force under invoices. It is the case of the appellant that though the invoices mentioned central excise duty on the goods supplied, they have not collected the duty from the buyer as the goods are exempted from central excise duty. It is contended that duty incidence has not been passed on to the buyer.
A Show cause notice was issued to the appellant proposing to reject the refund claim mainly on the ground of unjust enrichment. After due process of law, the original authority rejected the refund claim and the same was upheld by the Commissioner (Appeals). Hence, the present appeal.
S. Durairaj appeared and argued on behalf of the appellant. It is submitted by the learned Counsel that Indian Air Force had issued supply order dated 27.08.2008 to the appellant for supply of “Service Air Trolley” – CTH 88039000 of Central Excise Tariff Act, 1985.
The Counsel submitted that the appellant has furnished the Chartered Accountant Certificate along with audited Financial Statement for the relevant period, which would show that the amount is as receivables in their Balance Sheet.
M. Ambe appeared and argued for the department and supported the findings in the impugned order. The Counsel argued that the appellant has furnished the Chartered Accountant certificate and audited financial statement only before the Tribunal and these documents were not presented before the authorities below.
The Tribunal noted that “We are, therefore of the considered opinion that the matter requires to be remanded to the original authority, who shall consider the issue of refund afresh on the basis of the documents including the CA certificate and the audited financial statement produced by the appellant. The appellant shall be given an opportunity of personal hearing.”
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