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Finalisation of provisional assessment cases - Clearance of imported
goods under DEPB Scheme
Circular No. 67 dated 1st October
1999
Instances have
been reported to the Board by field formations where the provisional duty
determined on import of goods is being debited in DEPB scrips. At the time of
finalisation of assessment, the final duty payable may be more or less than the
duty, which was provisionally assessed. In cases where the final duty is more
than the provisional duty, the differential duty is paid by the importer either
in cash or adjusted through additional debit in DEPB scrip. An issue has arisen
for those situations where the final duty payable is less than the duty
provisionally assessed, where a refund would be admissible to the importer.
2. In
case the duty is paid in cash, the principle is well settled, since the duty
excess paid at the time of provisional assessment is liable for refund on
finalisation of assessment.
3. The
issue has been examined in the Board. In view of the fact that in case the final
duty is more than the provisional duty, and the differential duty which is
leviable must necessarily be debited in the DEPB scrip (or collected in cash),
equity would demand that wherever the final duty assessed is less than the
provisional duty, the excess credit must be re-credited in the DEPB scrip.
Secondly, DEPB scrip can be debited only to the extent of duty leviable. In case
the refund is not re-credited in the DEPB scrip, the action would amount of
higher amount of duty that the amount of duty leviable under low and would be
illegal.
4. Therefore,
in such cases, then eligible refund (excess debit) must be re-credited in the
DEPB scrip by the Custom House. Since this is only an adjustment in the original
debit due to finalisation of assessment at a lower amount of duty than the
provisional assessment, the re-credit shall be made by the Custom House itself.
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