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.

[Sanjay Sharma]

My dear, the basic theme of the refund as provided under section 11B of the Act is to help a genuine assessee in getting the excess duty paid or to exercise as right given to him under law. As rightly held in numerous judicial pronouncement refund is applicable only when duty of incidence has not been passed. In fact it is statutory requirement of the Act that if the duty of excise collected from the buyer the same must be deposited with Government forthwith, so no one is entitled to earn the duty form both ends i.e. recovery of duty from the buyer and simultaneously claiming the refund from the government. Pls. examine your case accordingly. Regards Sanjay Sharma

[sv bhasker]

Thank you Sanjayji. The fact of the matter is that the customer is reimbursing the bill amount including the duty        ( on 12.36% on RS. 90)at reduced assessable value of Rs. 90 per unit .  In the above circumstances, can it be said that incidence of duty has not been passed on, though bill was raised initailly at Rs.100 per unit and applicable duty(12.36%on Rs.100).. 

[Sanjay Sharma]

Dear Mr. Bhasker,

Your contention is very right.

 

Regards,

Sanjay Sharma

[sv bhasker]

May I request Mr Pradeep to respond?

AI Summary

Refund of excess duty depends on whether duty incidence was passed; buyer reimbursement at reduced value may permit refund. Refund of excess excise is available only when the incidence of duty has not been passed to the buyer; duties collected from the buyer must be deposited with government and one cannot both recover duty from the buyer and claim refund. If the purchaser reimbursed duty based on the revised lower assessable value, that supports a contention that incidence was not passed and a refund claim for the excess paid may be appropriate, subject to statutory and evidentiary examination.