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2015 (10) TMI 1035 - AT - Central ExciseDenial of refund claim - Adjustment of excess payment of duty against short payment - Whether duty paid in excess in respect of certain clearances made during a material period is adjustable against short payment of duty in respect of other clearances of that period on finalisation of provisional assessment and resultant excess if any arises upon such adjustment is refundable to the assessee without crossing bar of unjust enrichment being applicable - Held that:- there is no warrant in law to deal with the consequence of each clearance on case to case basis to determine shortage and excess of payment of duty and consequence thereof. The ultimate duty liability of a relevant period is to be determined in final assessment taking into consideration entire clearance of that period in aggregate and if there arises excess payment of duty upon such finalization of making due adjustment, that shall be refundable. - all the appeals on the point of adjustability of excess payment of duty against shortage of duty paid is allowed and excess duty paid is refundable without bar of unjust enrichment applicable. Second claim of the appellant that sales return are not dutiable being goods returned back by buyers is justified. Appellant does not incur liability when cleared goods come back to his custody within the knowledge of excise authority. Revenue has no finding to show that the sales returns were made by the arrangement of the parties to cause prejudice to the interest of Revenue. In commercial parlance, sales return are common where the buyer do not approve quality of goods, objects to the price charged or conditions of purchase order violated varied and similar other reasons. Therefore, directing payment of duty on sales returns shall be contrary to Commercial Parlance theory. - Decided in favour of assessee.
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