Case Law Details
On finalisation of the provisional assessment, it was revealed that there was some short duty paid by the assessee and there was some excess duty paid by them. It is held that Assessee is entitled for adjustment of excess duty paid with the short paid duty during the period of provisional assessment.
BRIEF FACTS
The Appellant is engaged in the manufacture of automotive IC Engine and was working under the provisional assessment for the period 01.04.2006 to 31.03.2007 which was finalised only on 16.11.2007.
On finalisation of the provisional assessment, it was revealed that there was some short duty paid by the assessee and there was some excess duty paid by them. The matter was adjudicated by the original adjudicating authority, who neutralised the short paid duty with the excess paid duty and granted refund of Rs.10 lakhs to the Appellant.
Being aggrieved with the order of the Adjudicating Authority, Revenue filed the appeal before Commissioner (Appeal) who reversed the order on the ground that short paid duty cannot be adjusted against excess paid duty.
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