Pre Deposit

[Aitha RajyaLakshmi]

Sir,

Whether Pre - deposit paid by the Assesse can be claimed as refund or adjust against Liability in case where the Assesse had got the Favourable order?

AI Summary

Pre-deposit refund requires request letter, not formal application; can't adjust against liability if dues pending. A query was raised regarding whether a pre-deposit paid by an assessee can be refunded or adjusted against liability if a favorable order is received. It was clarified that if government dues are pending, the department will appropriate the deposit against the liability, and a cash refund will not be provided. The Central Excise Manual allows for the return of deposits through a simple request letter, without requiring formal refund applications. However, there is no provision for adjusting the pre-deposit against the assessee's liability. A circular was also referenced for further guidance.