2026 (2) TMI 730

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....ing under Chapter 27 of the First Schedule to the Central Excise Tariff Act, 1985. In respect of the said final products packed in container of capacity more than 20 Liters, the assessable value was required to be determined in terms of Section 4 of the Central Excise Act, 1944. During the disputed period, the appellant had cleared the lubricating oil from the factory premises to the depot, for onward sale to the customers. Since, the price at which the said goods were required to be sold at the depot, during the material time of removal of the same from the factory was not available, the appellant had opted for provisional assessment in terms of Rule 7 of the Central Excise Rules, 2002. The provisional assessments for the period July 2014 ....

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....regard to short-paid duty, it was held by the authorities below, that under Rule 7 of the Central Excise Rules, 2002, the appellant is required to pay the differential duty along with interest and there is no provision prescribed under the statute for adjustment of the short-paid duty against the excess paid duty during the course of provisional assessment. Though the refund provisions contained in the Central Excise statute are applicable for claiming the excess duty paid as refund, but the provision regarding adjustment of the excess paid duty vis-à-vis the short-paid duty, there is no restriction in statute to opt for such adjustment mechanism. Since the final assessment order was passed on 24.12.2014 and immediately thereafter th....

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....eir assessment was provisional and no communication was addressed by the Revenue denying the said facility of assessment on provisional basis. In these circumstances, I do not find merit in the observation of the learned Commissioner (Appeals) that the assessment was since not provisional, therefore, the observation of the learned Commissioner (Appeals) that the assessment was since not provisional, therefore, the appellant is not entitled to adjust the duty short paid against the amount excess paid during the particular period of assessment. In the result, the appellant is entitled to adjust the duty short paid during the relevant period with that of excess paid. Consequently, the impugned order is set aside and the appeal is allowed with ....