Refund of excess excise duty on self-enhanced price allowed where buyer did not bear the extra incidence.

Refund of excise duty paid on a self-enhanced price was admissible where the assessee had already obtained departmental approval of the declared price under the price-list procedure and the consignee did not pay the increased amount. Because the extra duty was not passed on to the buyer, the incidence remained with the assessee and the claim fell within section 11B. The duty had been paid on a value different from the approved assessable value, so the amount represented excess duty beyond the approved price. The refund was therefore held allowable and the Revenue's challenge failed.

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Issues: Whether refund of duty paid on an enhanced price, which was not recovered from the buyer and was in excess of the price approved by the Department under the price-list procedure, was admissible under section 11B.

Analysis: The price declared by the assessee had been approved under Rule 173C of the erstwhile Central Excise Rules. Duty was nevertheless paid on a higher self-enhanced price, but the consignee refused to pay the increased amount. In these circumstances, the incidence of the extra duty was not passed on to the buyer. Since the duty had been paid on a value different from the approved assessable value, the claim was for refund of excess duty paid beyond the approved price. Such a claim satisfied the requirements of section 11B.

Conclusion: The refund was held to be admissible and the Revenue's challenge failed.

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