CCE Vs. BOMBAY SNUFF CO. LTD.

JUDGEMENT

(1.) THE instant appeals were filed by the Revenue against the impugned order wherein the Commissioner (Appeals) upheld the adjudication order sanctioning refunds and the appeals filed by the Department were rejected.

(2.) IN this case, the respondents are engaged in the manufacture of snuff. They filed four refund claims on the ground that the Government of Maharashtra imposed Luxury Tax; the Luxury Tax is admissible deduction under Section 4 of the Central Excise Act, 1944; and the Luxury Tax was paid by the respondents subsequent to the clearance of goods as the State Government did not consider their representation. They have also paid the duty on the amount of Luxury Tax. The respondents did not recover the Luxury Tax from their customers. Hence, the respondents filed the refund claims of the duty paid on Luxury Tax as admissible deduction under Section 4 of the Central Excise Act, 1944. The adjudicating authority sanctioned the refund claims and allowed the credit of the said in its CENVAT account following the Tribunal's decision in the case of CCE, Kanpur v. Kothari Products Ltd. , which was upheld by the Commissioner (Appeals).

(3.) THE learned DR submits that as per Section 11 -B of the Central Excise Act, it is clear that the assessee would be entitled for the grant of refund only if he is able to show that he is not passing on the duty, burden to any other person, which is claimed as refund. In this connection, the learned DR drew the attention of the Bench on the ground No. 6 of the Revenue's appeals as under: