Can we get refund of Excise ?

[Swapneswar muduli]

Dear Sir,

We are a manufacturer and we have our another manufacturing unit at Haridwar which is Excise Exempted Unit.

We transfer SFG items from our unit to Haridwar Unit as per CAS-4 cost of production plus 10% additional.

In general when transfer the item first calculate the transfer price as per our record and periodically we take CAS-4 certificate and paid the difference excise duty if any liability arises as per CAS-4 compare to our self assessment transfer price.

In some items when we calculate the transfer price that is cost of production plus 10% at that time some excel calculation and formula error is happened by which the transfer price of our product is gone up so in that rate our invoice generated and excise also paid. after month end we found that our transfer price was wrong and also we paid excise duty excess. after that we immediately taken the CAS-4 certificate for these items and calculate the how much amount of sale and excise duty gone up due to this wrong transfer price. Immediately we reverse the sale by issuing debit note credit note and take declaration form Haridwar Unit for not availing the cenvat credit, and obtaining the CA certificate for the same.

SO my query is that shall we eligible for get refund of the excess paid Excise duty with appropriate interest.

Regards

Swapneswar Muduli

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AI Summary

Manufacturer Seeks Refund for Excess Excise Duty Under Section 11B; Interest Not Guaranteed, Future Adjustments Suggested. A manufacturer inquired about obtaining a refund for excess excise duty paid due to a calculation error in transfer pricing between their units, one of which is excise exempt. They corrected the error by issuing debit and credit notes and sought advice on refund eligibility. Respondents advised filing a refund claim under Section 11B of the Central Excise Act, 1944, noting the claim must be within one year of payment. It was mentioned that interest on the refund may not be granted and suggested that adjusting future excise liabilities could be an alternative to seeking a refund.