Unjust enrichment


Last updated: 15 January 2009

Court :
Raj.High Court

Brief :
UoI Vs M/s A K Spintex Ltd & Anr (Dated : November 26, 2008) Central Excise - Assessable Value - Refund cannot be rejected merely because adjustments made through Credit/Debit Notes - it is clear that once the goods are supplied, the property in the goods passes to the purchaser, and seller becomes entitled to the price, and once the debit note is issued by the purchaser, and corresponding credit note is issued by the seller, the price of the goods stand reduced to the extent of debit note and credit note

Citation :
Refund cannot be rejected merely because adjustments made through Credit/Debit Notes

UoI Vs M/s A K Spintex Ltd & Anr (Dated : November 26, 2008) Central Excise - Assessable Value - Refund cannot be rejected merely because adjustments made through Credit/Debit Notes - it is clear that once the goods are supplied, the property in the goods passes to the purchaser, and seller becomes entitled to the price, and once the debit note is issued by the purchaser, and corresponding credit note is issued by the seller, the price of the goods stand reduced to the extent of debit note and credit note, meaning thereby, that after issuance of debit note and credit note, the price of goods charged by the seller, from the purchaser, is the price, initially billed, minus the amount of the debit note, and credit note, and therefore, when the debit notes and credit notes are issued and effected, which are not disputed, it cannot be assumed, that incidence of burden of excise duty has been passed on to the purchaser. No floodgates: It is contended by the counsel for the revenue, that mechanism of issuance of debit note and credit note, if countenanced, it will open flood gates for pilferage of revenue. The High Court did not agree and observed, "Firstly, we do not agree with the preposition, that it can open flood gates, in as much as, where false, fictitious or shame Debit note and credit note are issued for adjustment, the revenue can very well lead evidence, or can lead evidence in rebuttal. Simply because the revenue fails, and is not able to rebut evidence, it cannot be assumed, that it will open flood gates for pilferage of the revenue. Difficulties may be on either side, but then, that cannot be considered as a ground for interpreting sec. 12-B, in the manner the revenue wants us to interpret it." : RAJASTHAN HIGH COURT ;
 

Arbind Aggarwal
Published in Excise
Views : 1995

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