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TMI BlogRefund of excee paid dutyX X X X Extracts X X X X X X X X Extracts X X X X ..... Refund of excee paid duty X X X X Extracts X X X X X X X X Extracts X X X X ..... pradeep khatri: The Reply: Principal of unjust enrichment will also be applicable on such refunds. Reply By Anupam Tiwari: The Reply: Dear friend, Thanks for responding. But it seems that query has not been taken in right perspective. To elaborate my query was that if an assessee is clearing his goods under an agreement of price variation clause & is also under obligation to clear goods at hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hest price. The final price is determined after chemical analysis of cleared goods which may remain either same or may be lowered down (as goods have already been cleared on highest price). So, two conditions will arise: either price or subsequently duty payable and paid will remain same or price may be lowered and subsequently duty paid will be more than that that ought to have been paid. In firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t situation there will be no revenue implication whereas in second situation refund will arise. My query was whether provisional assessment is necessary for claiming refund by the assessee moresoever when doctrine of unjust enrichment is applicable in all cases of refund be it arise due to final or provisional assessment. Reply By NEERAJ KUMAR, RANCHI: The Reply: Yes Mr Tiwari, in scuh case , p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovsional assessment is necessary. Reply By pradeep khatri: The Reply: Rule 7 of Central Excise Rules make provisions in respect of provisional assessment. Provisional assessment can be requested by the assessee. Department cannot itself order provisional assessment. Final assessment will be made later by Assistant/Deputy Commissioner after getting the required details. In case of such provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al assessment, demand can be raised within one year after the provisional assessment is finalised. Department cannot order provisional assessment. If Central Excise Officer finds that self assessment is not in order, he can ask assessee to produce additional documents, records and other information and then issue a demand notice. Where assessee fails to provide records or other information and de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partment is unable to issue demand, 'best judgement method may be used to raise demand on collateral evidence. An assessee can request for provisional assessment in following circumstances - a) Assessee is unable to determine the value of excisable goods in terms of section 4 of CEA on account of non-availability of any document or information or b) Assessee is unable to determine rate of duty ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicable. In aforesaid cases, assessee may request Assistant/Deputy Commissioner in writing giving reasons for provisional assessment of duty. After such request, the AC/DC may by order allow payment of duty on provisional basis. The AC/DC shall also specify the rate or value at which the duty will be paid on provisional basis. [Rule 7(1)] Payment of duty on provisional basis will be allowed sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ject to execution of bond for payment of differential duty [Rule 7 (2)]. After that AC/DC should pass order for final assessment within 6 months from the date date of order or provisional assessment. This period can be extended by further 6 months by Commissioner and further without any time limit by Chief Commissioner [Rule 7(3)]. If differential amount is payable, interest is payable [Rule 7(4)] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . If excess amount was paid, it is refundable with interest [Rule 7 (5)]. The refund is subject to provision of unjust enrichment [Rule 7(6)]. X X X X Extracts X X X X X X X X Extracts X X X X
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