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

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.