Short paid duty demanded with interest; excess paid amount not refunded - Tribunal by majority quashes order
THE assessments were provisional. On finalisation of the provisional assessment, it was found that the assessee had during the year short paid duty to the extent of about 8.76 crore rupees and excess paid about 3.54 crore. The benign Commissioner was pleased to demand the 8.76 crore with interest, but rejected adjustment of excess paid duty.
In the CESTAT, the Member, Technical emphatically held that inter se adjustment of duty short paid and duty excess paid during the period of provisional assessment, cannot be allowed.
The Member, Judicial did not agree. She observed that if the shortfall during a particular period is required to be paid by the assessee and the excess payment made during another period falling in the same financial year is to be rejected, the entire purpose of keeping the assessment provisional, becomes a futile exercise . And so she held that the appellant is entitled to the adjustment of duty excess paid by them with duty short paid and their duty liability has to be arrived at accordingly .
The matter went to a Third Member who held, "The appellant is entitled for adjustment of excess paid duty with the short paid duty during the financial year 2006-07 as held by Member (Judicial)."
Recently the Division Bench based on the majority view allowed the appeal.
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