Sc Tells Barmalt To Return Govt Refund

In the first order since the recent Supreme Court judgment on unjust enrichment, the apex court yesterday directed Barmalt (India) Ltd to return to the government the amount received by it by way of refund of excess duty paid by it. The company had received Rs 2.67 crore in refund as it had paid duty for malt and malt extract.

The Delhi High Court had ruled that these products were entitled to duty exemption as they were food products. Therefore the levy was refunded.

Then the revenue department served notice on the purchasers of malt and malt extract from the company, which included SmithKline Beecham Consumer Health Care Ltd. But they had already paid the duty to Barmalt and had to pay the same duty over again to the state.

 

Although several formulae were discussed to overcome the impasse, the division bench consisting of Justice B P Jeevan Reddy and Justice S B Majmudar directed Barmalt to refund what it got to the state.

The Supreme Court had given detailed guidelines regarding refund of various customs, excise and other central levies in its judgment on Mafatlal Industries in December last year.