Excess duty during pending classification must be adjusted under the assessment rule, not claimed as a refund under Section 11B.

Excess duty paid on clearances made while classification lists remained pending was required to be dealt with under Rule 173-I(2) of the Central Excise Rules, 1944, because that scheme contemplated account-current credit on assessment for any excess duty determined and paid. As the clearances were not shown to be under provisional assessment, the payment did not give rise to a separate cash refund claim under Section 11B of the Central Excise Act, 1944. The lower authorities therefore applied the wrong provision, and the matter had to be processed under the specific adjustment mechanism in Rule 173-I(2) by the original authority.

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Issues: Whether the excess duty paid during the pendency of classification proceedings was a refund claim governed by Section 11B of the Central Excise Act, 1944, or a matter to be adjusted under Rule 173-I(2) of the Central Excise Rules, 1944.

Analysis: The clearances for which relief was sought were made while the classification lists remained under dispute and had not been approved. There was no material to show that the assessments were provisional, and the scheme of Rule 173-I required the assessee, on receipt of the assessment order, to take credit in the account-current for any excess duty determined and paid. That mechanism did not create an entitlement to a separate cash refund. Since the statutory route applicable to such excess payment was adjustment under Rule 173-I(2), the claim could not be dealt with as a refund under Section 11B. The lower authorities therefore applied the wrong provision.

Conclusion: The claim was not liable to be rejected as a refund under Section 11B, and the matter had to be dealt with under Rule 173-I(2) by the original authority.

Ratio Decidendi: Where excess duty is paid on clearances made during pending assessment of classification lists, and the governing rule provides only for account-current credit on assessment, the claim is to be processed under that specific rule and not as a refund under Section 11B.

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