2016 (8) TMI 780 - AT - Central Excise

Demand - duty short paid - excess paid duty did not adjusted by the Revenue - Held that - the issue is no longer res-integra. It is well settled that at the time of finalization of provisional assessment that the excess paid duty can be adjusted towards the duty short paid. Therefore, to arrive at final duty liability, adjustment of excess duty paid to the short payment have to be made. - Decided in favour of appellant with consequential relief

Summary

Issues: Finalization of provisional assessment and adjustment of excess duty paid.

In this case, the appellant, engaged in the manufacture of processed man-made fabrics, challenged an Order-in-Appeal that demanded duty short paid during the finalization of provisional assessment. The appellant contended that the excess paid duty should be adjusted towards the duty short paid, citing the case of Sangam Spinners. The authorities below did not provide relief, leading to the appeal before the tribunal.

The tribunal, after considering the issue, noted that the adjustment of excess duty paid towards the duty short paid at the time of finalization of provisional assessment is a settled principle. They referenced previous decisions such as Toyota Kirloskar Auto Parts India Pvt. Ltd. and Hindustan Zinc Ltd., supporting this view. The tribunal allowed the appeal in line with these decisions, granting consequential relief to the appellant.

Therefore, the tribunal held that the adjustment of excess duty paid towards duty short paid is permissible during the finalization of provisional assessment, as established by precedent cases, and allowed the appeal accordingly.