2008 (3) TMI 539 - AT - Central Excise

Summary

Issues:
1. Provisional assessment of excisable goods.
2. Finalization of assessable value.
3. Short-levy and excess collection by the Department.
4. Adjustment of excess payments towards short payments.
5. Procedure for finalization of provisional assessment under Rule 7 of the Central Excise Rules.

Analysis:
1. The applicant procured raw material provisionally assessed by the supplier, leading to uncertainty in determining the assessable value of excisable goods at clearance. The request for provisional assessment was made, and goods were cleared on a provisional basis.

2. Each consignment had an invoice, with monthly ER-1 returns filed. Upon availability of cost construction details at the financial year-end, the assessable value of goods cleared provisionally was finalized.

3. The Department identified short-levy on certain clearances and excess collection on others. They separated cases of short levy, demanding duty, and allowed the assessee to claim refunds for excess payments on other consignments.

4. The applicant argued for adjusting excess payments against short payments during periodic finalization, suggesting recovery or refund based on net amounts. The Department's invoice-wise finalization method was deemed cumbersome and not supported by Rule 7 of the Central Excise Rules.

5. The Tribunal found no provision in Rule 7 for the Department's proposed procedure, supporting the applicant's case for waiver and stay of dues as per the impugned order. Consequently, the Tribunal ordered in favor of the applicant, emphasizing the absence of sanction for the Department's method in the Central Excise Rules.

This detailed analysis of the judgment highlights the issues of provisional assessment, finalization of assessable value, Department's actions regarding short-levy and excess collection, adjustment of payments, and the procedural aspect under Rule 7 of the Central Excise Rules, providing a comprehensive overview of the Tribunal's decision.