Finality of approved price lists prevents reopening to disallow transport charges already accepted as deductible.

Approved price lists under Rule 173-C of the Central Excise Rules were treated as carrying finality, so the authorities could not reopen a list to disallow transport charges merely by characterising the freight as equalised freight. The deduction for transportation charges had already been accepted, and the assessee was held entitled in law to such deduction whether calculated on average freight or actual transportation cost. The attempted revision of the allowance was therefore unsustainable, and the disallowance of transport charges was set aside in favour of the assessee.

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Issues: Whether the respondents could reopen the approved price lists and disallow deduction of transportation charges on the footing that the freight was equalised freight.

Analysis: The deduction towards transport charges had already been accepted in the approved price lists. Rule 173-C of the Central Excise Rules was treated as a provision intended to give finality to an approved price list, and the respondents were held not empowered to reopen that determination merely on the assertion that the freight was equalised freight. The Court also accepted that the petitioner was entitled in law to deduction of transportation charges, whether computed on average freight or actual transportation cost, and held that the impugned attempt to revise the allowance was not sustainable.

Conclusion: The challenge to the reopening of transport charges succeeded and the disallowance was set aside in favour of the assessee.

Ratio Decidendi: An approved price list cannot be reopened under Rule 173-C of the Central Excise Rules to disallow transportation charges where the deduction has already been accepted and the assessee is otherwise entitled to such deduction.

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