Excess export duty refund allowed where mistaken FOB-based assessment led to overcollection without a separate challenge to assessment.

Refund of excess export duty was held admissible where shipping bills were assessed on FOB basis despite the established practice, clarified by Board circular, of treating FOB value as the cum-duty price for computing export duty and cesses. The Tribunal accepted that the excess duty arose from a mistaken assessment and could be refunded under the refund and correction provisions. It also held that the assessee was not required to separately challenge the assessment before seeking refund when the assessment itself was erroneous. Relief was therefore granted on the basis of the incorrect levy and the resulting excess collection.

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Issues: Whether refund of excess export duty was admissible where the shipping bills had been assessed on FOB basis and the assessee sought refund on cum-duty price basis without separately challenging the assessment.

Analysis: The refund claim arose from an erroneous assessment of export duty. The appellate authority had found that the assessing officer did not follow the existing practice of computing export duty and cesses by treating FOB value as the cum-duty price, as clarified by the Board circular. The Tribunal agreed that the excess duty collected on account of the wrong assessment could be refunded. It further accepted that the assessee was not required to challenge the assessment separately to obtain refund where the assessment itself was mistaken. The provisions enabling refund and correction of assessment were applicable to the situation.

Conclusion: Refund was admissible and the assessee was entitled to relief.

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