Excess duty collected on invoices cannot be retained where buyers are entitled to corresponding credit.

Excess duty collected from customers on clearance of inputs as such could not be retained where the invoices reflected a higher duty amount and enabled the purchasers to take corresponding credit. On the admitted facts, the appellant had recovered more than the actual duty payable and sought to keep the excess. That retention was impermissible because the invoice credit had already accrued to the customers, so the demand for the excess amount was upheld.

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Issues: Whether the appellant was entitled to retain or recover the excess amount of duty collected from customers while clearing inputs as such on payment of duty.

Analysis: The inputs had been cleared on invoices showing a higher duty amount, enabling the purchasers to take credit of the amount shown in those documents. The amount collected from customers exceeded the actual duty payable. On the admitted facts, the appellant had received the higher amount from customers and sought to retain it. Such retention was held impermissible because the customers were entitled to the credit reflected in the invoice and the appellant could not keep the excess collection.

Conclusion: The appellant was not entitled to retain the excess duty collected, and the demand was upheld.

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