Post-clearance price reduction does not revive excise duty refund rights once duty is fixed at clearance.

Excise duty liability is determined at the time of clearance of goods on the agreed contract price, and a later reduction in that price does not alter the duty already incurred. On that basis, a claim for refund of duty allegedly paid in excess was held to be unsustainable because post-clearance price revision does not create a legal entitlement to refund of excise duty. The refund claim was therefore correctly rejected.

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Issues: Whether refund of excise duty was admissible when the contract price was reduced after clearance of the goods and duty had already been paid on the original price.

Analysis: The goods were cleared on agreed rates and duty was discharged accordingly. The subsequent reduction in the price agreement did not alter the excise duty liability already incurred at the time of clearance. The claim for refund of the duty paid in excess was therefore not sustainable in law, as reduction in price after clearance does not create a right to refund of excise duty.

Conclusion: The refund claim was rightly rejected and the dismissal of the appeal was warranted.

Ratio Decidendi: A subsequent reduction in price after clearance of excisable goods does not affect the duty liability already determined at clearance and does not entitle the assessee to refund of duty.

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