Provisional excise assessments allow excess duty adjustment against short-paid duty without a separate refund claim.

In provisional excise assessments, excess duty paid and duty short-paid are to be considered together at finalisation, and the applicable rule permits adjustment of the excess payment against the short levy. A separate refund claim is not required before such adjustment can be made. On that basis, the excess duty was held adjustable against the short-paid duty, and the demand for the adjusted amount was not sustainable in law.

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Issues: Whether, in the case of provisional assessments, excess excise duty paid by the assessee could be adjusted against the short-paid duty at the time of finalisation without requiring a separate refund claim under the excise refund provision.

Analysis: The assessments were provisional, and on finalisation the excess duty already paid and the duty short-paid had to be considered together. The applicable rule governing provisional assessments required adjustment of the excess payment against the short levy. In such a situation, the assessee was not required to file a separate refund claim for the excess amount before the adjustment could be made.

Conclusion: The excess duty was rightly adjustable against the duty short-paid, and the demand confirmed for that amount was not sustainable in law.

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