Refund procedure must be followed before taking credit of excess duty; suo motu adjustment is impermissible.

Excess duty paid cannot be adjusted by an assessee through suo motu credit outside the prescribed refund mechanism; the statutory refund procedure must be followed before any credit is taken. The Tribunal held that bypassing the refund claim process was impermissible, and the order confirming duty, penalty and interest was consistent with the statutory framework. The contrary view of the Commissioner (Appeals) was therefore unsustainable, and the Revenue's challenge succeeded.

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Issues: Whether an assessee can take suo motu credit of excess duty paid without filing a refund application under the statutory procedure.

Analysis: The assessee had taken credit on its own without approaching the proper authority for refund. The Tribunal held that, where excess duty has been paid, the assessee must follow the procedure prescribed for refund and cannot bypass that mechanism by taking suo motu credit. The order confirming duty, penalty and interest was treated as consistent with the statutory framework, and the contrary view of the Commissioner (Appeals) was found unsustainable.

Conclusion: The assessee could not take suo motu refund or credit without filing a refund claim under the prescribed provision; the Revenue's challenge succeeded.

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