Section 11D does not trigger double recovery where duty-linked amounts were already adjusted and paid to the revenue.

Amounts debited at 8% under Rule 57CC(1) and recovered from buyers were already paid to the revenue at the time of removal of goods. Section 11D of the Central Excise Act applies only where a person collects an amount representing excise duty and retains it instead of passing it to the Central Government. As the invoices showed the amount had been adjusted against the statutory payment already made, nothing remained unpaid to the revenue. The principle against double recovery also supported the result. Section 11D was therefore not attracted, and no further deposit with the Central Government was required.

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Issues: Whether the amount debited at 8% under Rule 57CC(1) and recovered from customers was required to be deposited with the Central Government under Section 11D of the Central Excise Act, and whether Section 11D applies where the same amount has already been paid to the revenue and is not retained by the manufacturer.

Analysis: The amount in question was paid at the time of removal of the goods in terms of Rule 57CC(1) and thereafter recovered from buyers. The essential requirement of Section 11D is that a person who collects an amount representing excise duty must not retain it and must pass it on to the Central Government. On the facts found, no amount collected from buyers remained unpaid to the revenue, and the invoices showed that the amount had been debited or otherwise adjusted against the statutory payment already made. The principle against double recovery also supported the view that once the amount had already reached the revenue, Section 11D could not be invoked again merely because the recovery was described in duty-like terms.

Conclusion: Section 11D was not attracted, and the amount recovered from customers was not required to be deposited again with the Central Government.

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