Excise duty demand remains independent; excess-payment relief must be pursued through the prescribed refund procedure.

A statutory excise duty demand is independent of any separate refund claim, so earlier or alleged excess payment cannot be automatically set off against a later demand. Any remedy for excess duty lies in the prescribed statutory refund procedure, and not by adjustment through the demand proceedings. Where the aggrieved party does not follow the required refund route, no relief can be granted on the refund claim in those proceedings. The stated principle is that duty liability must be discharged when demanded, while excess-payment relief must be pursued through the governing refund mechanism.

---

---

Issues: (i) Whether excise duty already paid could be set off against a subsequent demand, and (ii) whether refund of duty allegedly paid in excess could be claimed without resort to the prescribed refund procedure.

Issue (i): Whether excise duty already paid could be set off against a subsequent demand.

Analysis: The demand for duty stood on an independent statutory footing. The existence of a possible refund claim for earlier or excess payment did not affect the liability to satisfy a separate demand. The remedy for any erroneous payment lay in the statutory refund mechanism and not in automatic adjustment against other dues.

Conclusion: The demand was enforceable and could not be defeated by a claim of set-off.

Issue (ii): Whether refund of duty allegedly paid in excess could be claimed without resort to the prescribed refund procedure.

Analysis: The governing refund provision required the aggrieved party to follow the prescribed method and manner for claiming refund. No sufficient basis was laid to challenge that procedure in the petition, and the claim for refund was not examined on merits in the absence of compliance with the statutory route.

Conclusion: No relief could be granted on the refund claim in these proceedings.

Final Conclusion: The petition failed because the duty demand remained payable and the refund remedy had to be pursued, if at all, in accordance with the prescribed procedure.

Ratio Decidendi: A statutory demand for duty is independent of any separate refund claim, and excess-payment relief must be sought through the prescribed refund procedure rather than by way of automatic set-off.

---