Commissioner of Central Excise Vs. Sarabhai Glass Industries Ltd.

1. the revenue's appeal is directed against the impugned order of the commissioner (appeals). it is noted from the facts of the case that the appellant manufactured steam falling under chapter no. 28 of the central excise tariff and cleared the same on payment of excise duty to the tune of rs. 184,684.60 for the period from 27.8.97 to 24.9.1997.the appellants realised that the said duty was not payable since the same was exempt from excise duty. secondly they filed a refund claim before the asst. commissioner, claiming that duty collected from the customers has been compensated by issue of credit notes to the customers. the asst. commissioner rejected the claim saying that issue of credit note to the customers does not overcome the clause of unjust enrichment. the commissioner (appeals) however disagreed with the finding of the asst. commissioner and allowed the claim. the instant appeal of the revenue challenges the finding of the ld. commissioner (appeals).3. the revenue has cited the judgment reported in 2002-taxindiaonline-58-cestat-mad in the case of cce madras vs.addition & co. claiming that issue of credit note to buyer is immaterial once burden in passed on the assessee at the time of clearance of goods.4. i find that the same principle has been reiterated by the tribunal in the case of sangam processors bhilara vs. cce jaipur reported in 2002-taxindiaonline-59-cestat-del-sb. the judgment of the tribunal in sangam processors has also been confirmed by the supreme court.5. consequently, the revenue appeal succeeds and the same is allowed and the order of the commissioner (appeals) is set aside.