Post-clearance price reduction cannot support excise duty refund unless clearance was under provisional assessment.

Refund of excise duty on post-clearance price reduction is not maintainable unless the clearances were made under provisional assessment in accordance with the prescribed procedure. Where the goods were finally assessed and no provisional assessment order or factual basis existed, later reduction of the contract price could not justify adjustment of duty already paid. The Tribunal applied this settled principle and held that the refund claim was unsustainable. The lower authority's allowance of refund was therefore set aside, with the issue decided against the assessee and in favour of Revenue.

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Issues: Whether duty refund could be granted on account of post-clearance price reduction when the clearances were not made on provisional assessment.

Analysis: The dispute turned on whether the goods had been cleared under provisional assessment so as to permit adjustment of duty liability after the contract price was reduced. The Tribunal relied on the settled principle that, in the absence of an order and factual basis showing provisional assessment, subsequent price reduction cannot form the foundation for refund of duty already paid. Since the clearances in the present case were not provisional, the claim for refund was not sustainable.

Conclusion: The issue was decided against the assessee and in favour of Revenue; refund was not admissible.

Final Conclusion: The appeal succeeded and the refund allowed by the lower authority was set aside.

Ratio Decidendi: Refund of excise duty on post-clearance price reduction is not maintainable unless the clearances were made on provisional assessment in accordance with the prescribed procedure.

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