Excess excise duty credit under RT-12 assessment can be adjusted without a separate refund claim.

Under the RT-12 assessment mechanism, where the assessed central excise duty is less than duty already paid, the assessee may take credit of the excess in the account-current on receipt of the assessed return. Rule 1731 of the Central Excise Rules, 1944 does not require a separate refund application for this adjustment. The applicable trade notice also recognised credit through remarks in the RT-12 return and PLA, with the Superintendent required to make the endorsement. If the assessee had already pointed out the excess payment in the return, the claim should not be rejected as time-barred.

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Issues: Whether the assessee was entitled to take credit of excess central excise duty paid through the RT-12 assessment mechanism without filing a separate refund claim, and whether the claim could be treated as time-barred.

Analysis: Rule 1731 of the Central Excise Rules, 1944 requires the proper officer to complete assessment on the RT-12 return and, where the duty assessed is less than the duty already paid, the assessee is entitled to take credit of the excess in the account-current on receipt of the assessed return. The rule does not contemplate a separate refund application for such adjustment. The Trade Notice dated 8-5-1978 recognised that where excess duty arose because information about a reduction in tariff value or rate reached the assessee late, the assessee could claim refund by suitable remarks in the RT-12 return and PLA, and the Superintendent was required to make the necessary endorsement. The Superintendent did not act in accordance with this mechanism, and the assessee had already pointed out the excess payment in the return.

Conclusion: The claim was not to be defeated as time-barred, and the assessee was entitled to the excess duty adjustment/refund.

Final Conclusion: The appeal failed because the statutory assessment procedure and the applicable trade notice entitled the assessee to credit of the excess duty, and the omission of the Superintendent could not prejudice that entitlement.

Ratio Decidendi: Where the excise assessment scheme itself permits adjustment of excess duty through the assessment return and the governing trade notice authorises credit in the account-current, a separate refund claim cannot be insisted upon to deny relief on limitation grounds.

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