Cancelled gate pass duty credit was recoverable despite assessee's debit, making refusal in RT-12 unsustainable.

Where a gate pass stood cancelled, the Superintendent could verify the cancellation and allow credit for the corresponding duty after arithmetically checking the consolidated PLA debit; the assessee's own debit did not defeat entitlement to credit. Refusal to grant credit in the RT-12 returns was therefore unsustainable, and consequential relief followed.

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Issues: Whether credit ought to have been granted in respect of duty debited for a cancelled gate pass, and whether the refund claim was liable to be rejected as time-barred.

Analysis: The cancellation of the gate pass was not in dispute. On that footing, the Superintendent could verify the cancellation and arithmetically check whether the consolidated debit in the PLA included the duty covered by the cancelled gate pass, and then grant the corresponding credit. The fact that the appellants had themselves debited the amount did not displace the entitlement to credit in the circumstances. The refusal to give credit in the RT-12 returns was therefore unsustainable.

Conclusion: The appeal was allowed and consequential relief followed.

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