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International Conveyors Ltd. v. Commissioner of Central Excise & Customs

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 7895 of 2004)Decided 25 Feb 2014
Civil Appeal No. 7895 of 2004
Justice Anil R. Dave · Justice Shiva Kirti Singh

Background

A conveyor-belt manufacturer obtained a refund of duty paid under protest on imported nylon yarn. The refund authority had established that its fixed-price customers had not borne the extra duty, but demanded an undertaking linked to another pending case. After that case was decided, the revenue sought repayment of the refund.

Decision Breakdown

The Court set aside the tribunal's order requiring repayment. The final, unchallenged refund findings established that the manufacturer had not passed the duty burden to its customers, and the revenue could not simply adopt contrary facts without disturbing that order. The separate decision on which the undertaking depended did not fit this case's established circumstances. The Court also awarded Rs. 25,000 in costs, payable within three months, because of the hardship caused by the prolonged proceedings.

Lesson Learnt

A refund dispute must respect established findings about who actually bore the duty. An undertaking linked to another case does not justify recovery when that case's premise does not apply.

Official source (sci.gov.in)View Judgment (PDF)

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