x ltd appealed against excess leay of customs duty on a machinery imported & used for capitve use, after paying the disputed amount under protest. though appeal was decided in its favour, the department refuses to grant refund on the ground that doctrine of unjust enrichment applies. is the department correct? will answer be different if the assessee reverses cenvat credit taken on input & agitates the matter? reply please thanx.
27 September 2010
If any duty is paid under protest then it should have been shown in the Loan And Advances - as Claims Recoverable in the balance sheet to safeguard against un-just enrichment.
The doctrine is:- you have to prove that the amount of duty has not been recovered from any other person.
And to prove this the amount is not built in to costs or not debited to P & L Account as expense.
CAclubindia
