Can excise duty collected from customer be refunded?

This query is : Resolved

Sasikumar (Querist)
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01 November 2014 My client is into refining & marketing business. The excise duty on furnace oil is paid at refinery gate at the time of removal to marketing location through stock transfer. The assessable value is calculated on the basis of market price prevailing at the receiving location. Fortnightly the price is revised. Once the product is transferred to marketing location, the price undergoes revision. Now the company collects excise duty on the revised price from customer. If the price was revised upwards, the excise duty collected from the customer is more than what was paid at the time of stock transfer. The company refunds the excess duty collected to customer through credit note provided the customer claims refund. Is this process correct? Can they refund?

Arun Kumar Singh

Arun Kumar Singh (Expert)
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01 November 2014 You need to issue supplementary invoice if you have collected the duty from customer and pay the duty to the government and show in the excise return. There is no any provision for refund of duty for domestic sale. If any doubt consult with any professional.
arunks03@gmail.com