Delhi HC Grants Relief to Nokia: CA Certificate Sufficient for Excise Duty Refund

In a significant ruling concerning excise duty refunds, the Delhi High Court has provided relief to mobile phone giant Nokia. The court’s order addresses the contentious issue of whether excise duty was effectively passed on to consumers, impacting refund eligibility.

The Core Issue: Excise Duty and Consumer Impact

The central dispute revolved around Nokia’s claim for an excise duty refund. A crucial aspect of such claims hinges on demonstrating that the excise duty burden was not ultimately transferred to the end consumer. Authorities often scrutinize these claims rigorously to prevent unjust enrichment.

The Role of the CA Certificate

Nokia presented a Chartered Accountant (CA) certificate as evidence to support its contention that the excise duty was not passed on to consumers. The Delhi High Court considered the validity and sufficiency of this certificate in establishing the required proof.

The court observed that the CA certificate, in this instance, served as adequate evidence to substantiate the claim. It ruled that denying the refund based solely on the premise that the excise duty might have been passed on to consumers, without concrete evidence to that effect, was not justified.

Refund to be Credited to Nokia, Not Consumer Welfare Fund

A key element of the High Court’s order was its rejection of the proposal to credit the refund to the Consumer Welfare Fund (CWF). The court deemed this approach lacking in justification, given Nokia’s demonstrated proof.

The Court firmly directed that the excise duty refund, along with applicable interest, must be paid directly to Nokia within two months from the date of the order. This directive underscores the importance of substantiated claims and fair application of tax laws.