2008 (7) TMI 972 - AT - Central Excise

Finalization of assessment - adjustment of excess amounts with the short payment - abatement of Turnover Discount - includibility

Summary

Issues:
- Adjustment of excess payment/short payment on finalization of provisional assessment
- Confirmation of demand without adjustment
- Applicability of cited rulings on duty paid/duty short paid

Analysis:
1. Adjustment of excess payment/short payment on finalization of provisional assessment:
The appeals arose from Orders-in-Appeal confirming the Order-in-Original disallowing the abatement of Turnover Discount by the Deputy Commissioner of Central Excise. The assessee contended that upon finalization of provisional assessment, the authority should adjust excess payment/short payment, and the balance amount should be refunded or deposited by the assessee. The learned Counsel argued that the authorities had properly followed the adjustment procedure in a previous case, and no duty would be liable to pay by the assessee when provisional assessments were finalized based on their submissions. The Tribunal noted that there was no dispute regarding the provisional assessments and held that the Revenue should adjust the duty paid/duty short paid as per established legal principles.

2. Confirmation of demand without adjustment:
The Tribunal observed that the Revenue had failed to adjust the excess payment made by the assessee with any demand due, contrary to the legal requirement. The confirmation of demand without such adjustment was deemed incorrect by the Tribunal. The learned Counsel's submission that the short amount due should be deposited by the assessee was accepted, leading to the conclusion that the confirmation of demand in the present case was not justified. The Tribunal emphasized that the Revenue is obligated to adjust any excess payment with the demand due, as per the law.

3. Applicability of cited rulings on duty paid/duty short paid:
The assessee relied on various rulings to support their argument, including cases such as CCE vs. Divya Enterprises and CCE vs. Pfizer Ltd., highlighting the importance of adjusting duty paid/duty short paid upon finalization of provisional assessments. The Tribunal acknowledged the relevance of these rulings and held that the Revenue's failure to follow this established legal principle rendered the confirmation of demand incorrect. By allowing the appeals, the Tribunal upheld the plea of the appellant, emphasizing the necessity of adjusting excess payments with any demand due in accordance with the law.

In conclusion, the Tribunal found in favor of the appellant, emphasizing the legal obligation of the Revenue to adjust excess payments with any demand due upon finalization of provisional assessments, as established by relevant legal principles and cited rulings.