payment of duty under protest

[felix ka]

 I have the following queries:

1. When an assessee is not sure of his duty liability, he can opt to pay excise duty under protest. Correct? the uncertainty is due to the lack of clarity in the 'deemed manufacture' as per CETA.
2. In such a situation, can we collect excise duty from our customers (product buyers) but still pay excise duty under protest?
3. Can we take CENVAT Credit of the duty paid under protest?

AI Summary

Payment under protest limits refund rights and CENVAT credit when duty is collected from customers, shaping dispute strategy.
Payment under protest permits an assessee uncertain about excise liability to remit duty while disputing the claim, provided there is prior written intimation and marking of invoices and returns that duty is paid under protest. Collection of duty from customers is allowed but, if CENVAT credit has been availed by the assessee or customers, a successful dispute will generally not permit refund of amounts already credited and differential amounts may not be eligible for CENVAT credit, potentially being transferred to the consumer welfare fund. Provisional assessment is an alternative to manage quantum pending finalisation.