UNION OF INDIA AND ORS. versus I.T.C. LIMITED

UNION OF INDIA AND ORS. versus I.T.C. LIMITED

Since the respondent failed to produce evidence rebutting the statutory presumption that the incidence of excise duty was passed to buyers, refund under amended Section 11B cannot be granted; the amended provisions apply as claim was pending when amendment took effect.

Parties
Appellant: Union of India and Ors.; Respondent: I.T.C. Limited
Jurisdiction
India
Judgment Date
16 July 1993
Procedural Posture
Civil Appeal / Supreme Court Appeal Against High Court Judgment
Outcome
Appeal allowed
Legal Topics
Excise Duty Refund, Mistake of Law, Limitation, Amendment to Statutory Provisions, Unjust Enrichment
Taxation Excise Law Administrative Law Excise Duty Refund Mistake of Law Limitation Amendment to Statutory Provisions Unjust Enrichment

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Parties

Union of India and Ors.

Appellant

I.T.C. Limited

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal Against High Court Judgment

Legal Issues

  1. 1 Whether excise duty paid under mistake of law is refundable despite limitation
  2. 2 Applicability of amended Section 11B of Central Excises and Salt Act, 1944 to pending refund claims
  3. 3 Whether the presumption under Section 12B regarding passing on incidence of excise duty can be rebutted by assessee

Ratio Decidendi

Since the respondent failed to produce evidence rebutting the statutory presumption that the incidence of excise duty was passed to buyers, refund under amended Section 11B cannot be granted; the amended provisions apply as claim was pending when amendment took effect.

Court Disposition

Appeal allowed

Orders

  • Order of Delhi High Court directing refund set aside, refund claim rejected due to failure to rebut statutory presumption.
  • Respondent directed to refund Rs. 23,68,686.85 and Rs. 26,21,356.16 (total Rs. 49,90,043.01) to appellants with 12% interest per annum from date of receipt, within eight weeks.