refund of duty paid in excess

[sv bhasker]

Dear experts

A company clears goods say at Rs. 100 per unit and pays duty  of Rs. 12.36 at 12.36% as per existing Purchase order (PO). However, after a month after the goods are cleared by adopting transaction value of Rs. 100, the PO is revised with back date revising   the price per unit as  Rs. 90. Payment is received as per the revised rate of Rs. 90. Can the company get refund of the excess  duty paid  initially on Rs. 100 which is Rs. 10 more than the revised price of Rs. 90 per unit. In other words can the company get refund of duty which is the difference between Rs. 12.36 (being 12.36% on 100)and Rs.11.12(being 12.36%on 90) in the above example . Pl offer views.

AI Summary

Company Seeks Duty Refund After Price Revision; Section 11B May Prevent Claim if Duty Passed to Buyer. A company initially cleared goods at Rs. 100 per unit, paying a duty of Rs. 12.36. The purchase order was later revised to Rs. 90 per unit, and payment was received at this lower rate. The company seeks a refund for the excess duty paid on the original price. An expert explains that under Section 11B of the Act, a refund is possible only if the duty incidence has not been passed to the buyer. If the duty was collected from the buyer, it must be deposited with the government, preventing a refund claim. The discussion seeks further clarification.