2026-VIL-909-GUJ-CU
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CUSTOMS High Court Cases

Customs - Unjust Enrichment Bar in Refund Claims - Chartered Accountant Certificate as Proof of Non-Recovery of Duty – Respondent-assessee imported bunker oil contained in tanks as part of vessel for breaking, initially assessed to duty under Chapter 27 and paid provisional duty, later reassessed under Chapter 89.08 as part of vessel. Assessee claimed refund of excess duty paid, contending that duty was not passed on to any buyer - Department rejected claim on ground that assessee had not submitted relevant documents as required under Section 27 of Customs Act, 1962 and merely submitted Chartered Accountant certificate, and further that duty was shown as expenditure in Profit and Loss Account rather than as receivable in balance sheet - Whether Chartered Accountant certificate certifying non-passing of duty is sufficient evidence to discharge burden of proof where financial records were not produced and duty was debited as expense - HELD - Once an assessee produces certificate issued by Chartered Accountant based on documents placed on record certifying that incidence of duty has not been passed on to any buyer coupled with evidence that goods have been sold at price below import cost value on which duty was assessed, the burden shifts to the Revenue to produce tangible evidence to rebut such certificate and discharge the onus shifted on it - Where goods are eventually sold at price far less than assessed values and assessee has not been able to recover even the full import price of goods on which duty was assessed, there is no question of passing the duty paid to customers - Merely debiting duty as expense in Profit and Loss Account does not result in incidence thereof being passed on to buyers when price at which goods were sold to buyers was even less than import price on which duty was assessed - Chartered Accountant certificate based on documents on record is binding on adjudicating authority and must be considered as authentic document. The bar of unjust enrichment cannot be said to apply where assessee has borne the burden of duty and never passed it on to buyer. Reliance placed on Mafatlal Industries is not applicable when goods are sold below import cost. Refund claims are entitled to be allowed where duty was not passed on as certified by Chartered Accountant and as evident from sales data showing sale price below import cost – Revenue appeals are dismissed and the judgment of CESTAT allowing refund is upheld
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