TaxTMI 
TaxTMI 
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?
Pre Deposit
16 Feb 2017 
6 Replies 
1874 Views Asked by
Guest 
Pre-deposit adjustment: statute lacks provision to set off deposits against liabilities, refund sought via departmental return procedure.
There is no provision in the Central Excise enactments or rules permitting adjustment of a pre-deposit against an assessee's liability; an assessee with a favourable appellate order should request return of the deposit by submitting a simple letter along with an attested copy of the order and the challan evidencing payment, and bank guarantees executed in lieu of cash deposits are to be returned, although the department may in practice appropriate deposits against pending dues. (AI Summary)
There is no provision in the Central Excise enactments or rules permitting adjustment of a pre-deposit against an assessee's liability; an assessee with a favourable appellate order should request return of the deposit by submitting a simple letter along with an attested copy of the order and the challan evidencing payment, and bank guarantees executed in lieu of cash deposits are to be returned, although the department may in practice appropriate deposits against pending dues. (AI Summary)