Cash refund under Rule 57E(2) upheld where differential duty credit was varied and adjustment was not possible.

Rule 57E(2) permitted cash refund where credit taken on duty was later varied and adjustment could not be made. After differential duty was paid on finalisation of provisional assessments and a certificate was issued by the jurisdictional Superintendent, the Tribunal read the rule as allowing variation of the credit by adjustment, and, if adjustment was not possible, reimbursement in cash. On that basis, the assessee's claim for cash refund was sustainable and was allowed.

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Issues: Whether the assessee was entitled to cash refund of the amount representing differential duty credit under Rule 57E(2).

Analysis: The dispute turned on the scope of Rule 57E(2) as it stood at the relevant time. On the facts, differential duty had been paid pursuant to finalisation of earlier provisional assessments, and the assessee had been issued a certificate by the jurisdictional Superintendent. The Tribunal held that, in view of the clear wording of Rule 57E(2), the credit was liable to be varied by adjustment and, where such adjustment was not possible, refund in cash could follow. Accordingly, the assessee's claim for cash refund was sustainable.

Conclusion: The assessee was entitled to cash refund under Rule 57E(2).

Final Conclusion: The appeal succeeded and the refund claim was allowed on the footing that the relevant rule permitted cash reimbursement in the circumstances.

Ratio Decidendi: Where duty originally credited is subsequently varied and adjustment is not possible, Rule 57E(2) permits cash refund to the credit-taking manufacturer.

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