Provisional assessment duty adjustment upheld where excess payment was set off against final short-payment without a refund claim.

Excess duty paid during provisional assessment could be adjusted against the short-payment on finalisation under Rule 9B(5) of the Central Excise Rules, 1944, because the rule required the provisionally assessed duty to be reconciled at final assessment. The later proviso linking such adjustment to a refund claim under Section 11B applied only after insertion by Notification No. 45/99-C.E. dated 25-6-1999 and did not govern the period in dispute. The adjudicating authority's adjustment was therefore lawful, and the Revenue's challenge failed.

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Issues: Whether excess duty paid during provisional assessment could be adjusted against short-payment at the time of finalisation without insisting on a refund application under Section 11B.

Analysis: Rule 9B(5) of the Central Excise Rules, 1944, as it stood for the relevant period, provided that the duty provisionally assessed had to be adjusted against the duty finally assessed and that any excess payment or short-payment would be worked out at final assessment. On that basis, excess duty paid by the assessee could validly be adjusted against the amount found payable on finalisation. The proviso requiring refund under Section 11B was inserted only later by Notification No. 45/99-C.E. dated 25-6-1999 and was not applicable to the period in dispute.

Conclusion: The adjustment made by the adjudicating authority was lawful and the Revenue's challenge failed.

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