CESTAT ruled that in provisional assessment cases, adjustments...

CESTAT ruled that in provisional assessment cases, adjustments of excess duty payments against shortfalls must be handled comprehensively. The tribunal determined that Rule 7 does not explicitly address duty adjustment scenarios, while Sub-rule 6 preserves the assessee's refund rights subject to unjust enrichment principles. Following the Karnataka HC's precedent in similar cases, when provisional assessment applies to entire goods, final duty calculations require consolidated adjustments of excess payments against shortfalls. The doctrine of unjust enrichment was found inapplicable where duty burden was not transferred. The appellant successfully established their right to adjust excess duty payments without being subject to unjust enrichment considerations. Appeal sustained.

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