Duplicate Customs Duty Payment Not Required When Confirmed Demand Was Already Deposited During Investigation

Where duty confirmed in adjudication had already been deposited during investigation with one Customs formation, the assessee could not be required to pay the same amount again in another Commissionerate merely because of inter-Commissionerate accounting difficulties. The adjustment of payment was an internal administrative matter between Customs offices, and it did not create a fresh legal liability for a second deposit. The note therefore states that an assessee who has already paid the confirmed demand is under no further obligation to redeposit the same amount in a different Commissionerate.

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Issues: Whether the assessee was required to deposit again, in the Calcutta Commissionerate, the duty amount already deposited during investigation with the Jaipur Commissionerate, while the confirmation of duty and penalty remained unchallenged.

Analysis: The amount confirmed in adjudication had already been paid during investigation pursuant to directions of the DRI. The direction to pay the same amount again was made only because of inter-Commissionerate accounting difficulties. Since the money had already been deposited and the adjustment was an internal administrative matter between Customs formations, the assessee could not be burdened with a second payment for the same confirmed demand.

Conclusion: The assessee was under no legal obligation to pay the confirmed amount again in Calcutta.

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