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refund of duty paid in excess, Central Excise

Issue Id: - 4394
Dated: 19-7-2012
By:- sv bhasker

refund of duty paid in excess


  • Contents

Dear experts

A company clears goods say at Rs. 100 per unit and pays duty  of Rs. 12.36 at 12.36% as per existing Purchase order (PO). However, after a month after the goods are cleared by adopting transaction value of Rs. 100, the PO is revised with back date revising   the price per unit as  Rs. 90. Payment is received as per the revised rate of Rs. 90. Can the company get refund of the excess  duty paid  initially on Rs. 100 which is Rs. 10 more than the revised price of Rs. 90 per unit. In other words can the company get refund of duty which is the difference between Rs. 12.36 (being 12.36% on 100)and Rs.11.12(being 12.36%on 90) in the above example . Pl offer views.

Posts / Replies

Showing Replies 1 to 4 of 4 Records

Page: 1


1 Dated: 20-7-2012
By:- Sanjay Sharma

My dear, the basic theme of the refund as provided under section 11B of the Act is to help a genuine assessee in getting the excess duty paid or to exercise as right given to him under law. As rightly held in numerous judicial pronouncement refund is applicable only when duty of incidence has not been passed. In fact it is statutory requirement of the Act that if the duty of excise collected from the buyer the same must be deposited with Government forthwith, so no one is entitled to earn the duty form both ends i.e. recovery of duty from the buyer and simultaneously claiming the refund from the government. Pls. examine your case accordingly. Regards Sanjay Sharma


2 Dated: 21-7-2012
By:- sv bhasker

Thank you Sanjayji. The fact of the matter is that the customer is reimbursing the bill amount including the duty        ( on 12.36% on RS. 90)at reduced assessable value of Rs. 90 per unit .  In the above circumstances, can it be said that incidence of duty has not been passed on, though bill was raised initailly at Rs.100 per unit and applicable duty(12.36%on Rs.100).. 


3 Dated: 23-7-2012
By:- Sanjay Sharma

Dear Mr. Bhasker,

Your contention is very right.

 

Regards,

Sanjay Sharma


4 Dated: 18-8-2012
By:- sv bhasker

May I request Mr Pradeep to respond?


Page: 1

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