Commissioner of Customs Vs U.T. Electronics Pvt. Ltd (Delhi High Court)
Delhi High Court has dismissed appeals filed by the Commissioner of Customs, upholding a decision by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) that granted a refund to M/s U.T. Electronics Pvt. Ltd. The core issue in the appeals was the doctrine of unjust enrichment and whether the company had successfully demonstrated that it had not passed on the burden of customs duty to its customers.
CESTAT had examined the evidence provided by U.T. Electronics, including a Chartered Accountant’s certificate and balance sheets, which the company argued proved that the duty incidence was not passed on. The assessee relied on several judicial precedents before CESTAT, notably the Delhi High Court’s decision in M/s. Yu Televentures Pvt. Ltd. (upheld by the Supreme Court), which held that a refund claim could be allowed based on documentation like a CA certificate and sales invoices, even if the amount was not initially shown as recoverable in the balance sheet, provided the burden was not passed on. CESTAT also considered other rulings like SRF judgment (Supreme Court), Tecil Chemicals & Hydro Power Ltd. (CESTAT), and Commissioner of Customs, Bangalore vs. Apple India Pvt. Ltd. (Karnataka High Court) concerning the admissibility of evidence and rebuttal of the unjust enrichment presumption under Section 28D of the Customs Act, 1962.
