Provisional assessment controls refund claims where post-clearance price reduction does not justify excise duty refund.

Refund of central excise duty was held inadmissible where goods were cleared on a final basis and no provisional assessment had been made. The later retrospective reduction in price, supported by amended purchase orders and debit or credit notes, did not reopen the duty already paid on clearance. The applicable principle was that anticipated price variation should be addressed through provisional assessment; absent that course, a subsequent price reduction does not provide a valid basis for refund. The Commissioner (Appeals) order was sustained and the claim failed.

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Issues: Whether refund of central excise duty was admissible on account of subsequent reduction in price after clearance of goods, where no provisional assessment had been resorted to.

Analysis: The dispute turned on whether the duty, once paid on clearances made under final invoices, could be reopened because the purchase order was later amended with retrospective effect and the buyer issued debit and credit notes for the reduced price. The applicable legal position was that where price variation was already anticipated, the proper course was provisional assessment. Reliance was placed on the line of decisions holding that, in the absence of provisional assessment or clearance on a provisional basis, later reduction in price does not furnish a foundation for refund. Following the view already affirmed in the connected precedent and the Supreme Court-backed line of authority, the Tribunal treated the issue as covered in favour of the Revenue.

Conclusion: Refund was not admissible and the absence of provisional assessment was fatal to the claim. The issue was decided against the assessee and in favour of the Revenue.

Final Conclusion: The order of the Commissioner (Appeals) was sustained and the appeal was dismissed.

Ratio Decidendi: Where goods are cleared on a final basis and no provisional assessment is made, a subsequent retrospective reduction in price does not justify refund of excise duty already paid.

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