Adjustment of duty payment against confirmed liability allowed after remand in compounded levy recovery dispute

Under the compounded levy scheme, where duty liability is re-quantified after remand and the assessee has already made a specific payment towards the same composite demand, that payment must be adjusted against the confirmed liability to ensure correct recovery. The document states that the appellant's payment of Rs. 3,50,000 was examined for adjustment against the duty confirmed for the relevant periods, and the adjustment was allowed because the demand itself was not disputed. Partial relief was therefore granted by directing that the earlier payment be credited towards the duty liability confirmed in the impugned order.

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Issues: Whether the amount of Rs. 3,50,000/- paid by the appellant during the relevant period was required to be adjusted towards the duty liability confirmed in the impugned order.

Analysis: The dispute arose in the context of duty liability under the compounded levy scheme and the directions issued in the earlier remand order, which required adjustment of excess duty paid for the later period against the duty recoverable for the earlier period. The impugned order confirmed duty for January 1999 to June 1999 and also directed deposit of Rs. 2,95,142/- for July 1999 to November 1999. Since the appellant specifically sought adjustment of Rs. 3,50,000/- already paid during 08.09.2014 to 01.12.2014, and there was no objection to the confirmed demand itself, the adjustment claim was examined as a matter of recovery and quantification.

Conclusion: The amount of Rs. 3,50,000/- was directed to be adjusted towards partial recovery of the confirmed duty demand, and the appellant succeeded to that extent.

Final Conclusion: The appeal was disposed of by granting partial relief to the appellant through direction for adjustment of the payment already made against the duty liability confirmed in the impugned order.

Ratio Decidendi: Where duty liability is re-quantified after remand and the assessee has made a specific payment towards the same composite demand, such payment must be adjusted against the confirmed duty liability in the interests of correct recovery.

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