2006 (6) TMI 10 - AT - Central Excise

Central Excise - Provisional Assessment - No appeal was filed against rejection order - Refund of excess duty paid to be adjusted against demand of duty - Case remanded

Summary

Issues:
1. Provisional assessment of duty for the period April to December, 2003.
2. Challenge against demand of duty and rejection of refund claims for various periods.
3. Set-off of demand against refund claims and non-acceptance of depot invoices as evidence.

Detailed Analysis:
1. For the period April to December, 2003, the appellants claimed provisional assessment of duty based on the average price until exact sales prices from depots were available. However, the department treated the assessments as final for this period as per the rejection letter dated 08.12.2003. The appellants' claim for provisional assessment was not sustained, leading to the dismissal of Appeal No. E/1128/2005 challenging a duty demand and refund claim rejection.

2. In Appeal No. E/1129/2005 (pertaining to April 2002 to March 2003) and Appeal No. E/5/2006 (pertaining to July 2000 to March 2002), the provisional nature of assessments was acknowledged. Challenges included duty demands and refund claim rejections based on correct depot prices compared to average prices used for provisional assessments. The judgment highlighted the need for the original authority to re-quantify the net amount due to the assessee considering the provisional nature of assessments. It emphasized the requirement for set-off where demand and refund claims exist, and the importance of allowing the assessee to present all relevant depot invoices to support refund claims.

3. The Appellate Tribunal allowed the appeals by way of remand for Appeal No. E/1129/2005 and Appeal No. E/5/2006. The lower authorities' orders were set aside, directing the original authority to make fresh decisions after providing the assessee with a fair opportunity to submit all necessary depot invoices for refund claims and to present their case in person. The judgment emphasized the importance of considering all evidence before finalizing the assessment, ensuring a just and thorough review of the duty demands and refund claims for the respective periods.