Suo motu credit for excess duty allowed where payment was disclosed in assessed returns and already known to the department.

Excess duty paid at clearance and reflected in duly assessed RT-12 returns, supported by a Central Excise Officer's certificate, could be taken as suo motu credit because the payment was already within departmental knowledge. Rule 173-I(4) and the Board circular relied on by the Revenue were held inapplicable on these facts, and prior separate permission or fresh intimation was not required. The Tribunal precedent cited in support allowed credit in similar circumstances, so the assessee was entitled to credit the excess duty and the Revenue's challenge failed.

---

---

Issues: Whether the assessee was entitled to take suo motu credit of excess duty paid without prior permission or separate intimation to the Department.

Analysis: The excess duty had admittedly been paid at the time of clearance and was reflected in RT-12 returns which were duly assessed. The record also contained a certificate issued by the Central Excise Officer. In these circumstances, the excess payment was already within the Department's knowledge, and the assessee was not barred by law from taking credit of the amount in its records. Rule 173-I(4) and the Board's Circular relied upon by the Revenue were held inapplicable on the facts, and the conclusion was supported by the cited Tribunal precedent allowing credit of excess duty in similar circumstances.

Conclusion: The assessee was entitled to take credit of the excess duty, and the Revenue's challenge failed.

Ratio Decidendi: Where excess duty payment is disclosed in assessed returns and otherwise evidenced on record, suo motu credit cannot be denied merely for want of separate permission or fresh intimation.

---