Provisional contract pricing supported refund of excess excise duty after downward revision of purchase order prices.

Provisional pricing under advance and connected purchase orders justified refund of excess central excise duty where later communications and departmental clarification confirmed downward revision of the contract prices. The material on record showed that the appellant did not realise any amount above the revised prices, and there was no finding of excess recovery after revision. On that basis, the claim for refund was accepted on merits.

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Issues: Whether the appellant was entitled on merits to refund of excess central excise duty paid on supplies made under purchase orders whose prices were later revised downward.

Analysis: The advance purchase order and the connected purchase orders showed that the prices were provisional and subject to revision on the basis of the tender inquiry. The subsequent communications dated 23-3-95 and the clarification from the Department of Telecommunication confirmed the reduction in prices of the relevant items. The documents produced by the appellant supported the claim that no higher price was realised after the revision, and there was no finding that the appellant had received amounts in excess of the revised prices.

Conclusion: The appellant was held eligible for refund on merits.

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