2004 (97) ECC 435 (Tri)

CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL

New Delhi -- Bench-NB(SM)

Shri S.S. Kang, Member (J)

CCE, Indore

Versus

Shree Synthetics Ltd.

Appeal No. C/32/2004/NB(SM)

[Arising out of Order-in-Appeal No. 589-CUS/IND/APPL-II/03 dated 20.10.2003 passed by the Commissioner (Appeals), Customs & Central Excise, Indore]

Final Order No. A/941/04/NB(S), dated 27.5.2004, Certified on 24.6.2004

Unjust enrichment

Principles of -- Applicability -- The Commissioner (Appeals) in the impugned order wrongly allowed the appeal filed by the appellant on the ground that principles of unjust enrichment are not applicable in the case of captive consumption of the goods. The Hon'ble Supreme Court in 2000 (68) ECC 25 (SC) held that principles of unjust enrichment are applicable in respect of imported raw material, which is captively consumed in the manufacture of final product.

Appeal is allowed

PRESENT :

Shri V. Valte, SDR for the appellant.

None for the respondent.

Cases Cited :

1. Alcatel Modi Networks Systems v. CCE, 2000 (117) ELT 522 (T)....................... [Para 3]

2. UOI v. Solar Pesticide 2000 (68) ECC 25 (SC) (Followed) ........................... [Paras 4, 5]

Per : S.S. Kang

When the case was called none appeared on behalf of the respondent in spite of notice.

2. Heard Ld. SDR.

3. The Revenue filed this appeal against Order-in-Appeal passed by the Commissioner (Appeals). The Commissioner (Appeals) in the impugned order held that principles of unjust enrichment are not applicable in respect of goods captively utilised by the manufacturer. The Commissioner relied upon the decision of the Tribunal in the case of Alcatel Modi Networks Systems v. CCE, 2000 (117) ELT 522.

4. The contention of the Revenue is that this issue is now settled by the Hon'ble Supreme Court in the case of Solar Pesticide Pvt. Ltd. and Hon'ble Supreme Court held that the principles of unjust encrichment are applicable even in the case of captive consumption.

5. The Commissioner (Appeals) in the impugned order allowed the appeal filed by the appellant on the ground that principles of unjust enrichment are not applicable in the case of captive consumption of the goods. The Hon'ble Supreme Court in the case of Union of India v. Solar Pesticide Pvt. Ltd., 2000 (68) ECC 25 (SC) : 2000 (116) ELT 401 held that principles of unjust enrichment are applicable in respect of imported raw material, which is captively consumed in the manufacture of final product. In view of the decision of the Hon'ble Supreme, the appeal is allowed.

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