TaxTMI 
TaxTMI 
Whether provisional assessment under rule 7 of CE Rule, 2002. is necessary for refund of excess paid duty in case party is paying duty at highest value which may subsequently be reduced after chemical analysis of goods.
Refund of excee paid duty
08 Sep 2011 
4 Replies 
1540 Views Asked by
Provisional assessment permits interim duty payment pending valuation, enabling refund where final valuation reduces excise liability.
Provisional assessment under Rule 7 is the mechanism allowing an assessee to pay duty pending final valuation or rate determination; it must be requested by the assessee, not imposed by the department. Where granted, the authority specifies provisional rate or value and may require a bond for differential duty. Final assessment must be completed within prescribed timeframes, excess duty is refundable with interest, and refunds remain subject to the doctrine of unjust enrichment. (AI Summary)
Provisional assessment under Rule 7 is the mechanism allowing an assessee to pay duty pending final valuation or rate determination; it must be requested by the assessee, not imposed by the department. Where granted, the authority specifies provisional rate or value and may require a bond for differential duty. Final assessment must be completed within prescribed timeframes, excess duty is refundable with interest, and refunds remain subject to the doctrine of unjust enrichment. (AI Summary)