Rule 57CC reversal is not excise duty, so Section 11D cannot apply merely because the amount appears in invoices.

Amount paid under Rule 57CC for common inputs used in exempted and dutiable goods is not excise duty, even if reflected in invoices. Section 11D applies only where a person liable to pay duty collects an amount as duty in excess of the duty assessed, determined, or paid. On these facts, the assessee had made the 8% reversal in the manner required by Rule 57CC, so the Commissioner (Appeals) erred in treating it as duty. The Tribunal set aside that order, restored the original order dropping the proceedings, and held that Section 11D was not attracted.

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Issues: Whether the amount equal to 8% paid under Rule 57CC of the Central Excise Rules, 1944 and shown in invoices could be treated as excise duty so as to attract Section 11D of the Central Excise Act, 1944.

Analysis: The Tribunal held that the amount paid under Rule 57CC is not duty but only an amount reversed in respect of common inputs used in exempted and dutiable products. Section 11D is attracted only when a person liable to pay duty collects an amount in excess of the duty assessed or determined and paid, representing it as duty. The Tribunal applied earlier decisions holding that where the amount collected is not duty, Section 11D has no application. It found that the assessee had collected the 8% amount and deposited it in the manner required by Rule 57CC, and that the Commissioner (Appeals) had wrongly treated that amount as excise duty.

Conclusion: The amount paid under Rule 57CC was not excise duty and Section 11D was not attracted on those facts; the Revenue's appeal succeeded.

Final Conclusion: The order of the Commissioner (Appeals) was set aside and the original order dropping the proceedings was restored, with consequential relief.

Ratio Decidendi: Section 11D applies only where duty is collected as duty and retained without payment to the exchequer; an amount paid under Rule 57CC is not duty and therefore cannot be recovered under Section 11D merely because it is reflected in invoices.

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