Trade discount must be excluded from excise valuation; excess duty paid on that basis is refundable and not barred by limitation.

Trade discount was required to be excluded from assessable value under the Explanation to Section 4 for excise duty purposes. Duty paid on a valuation that wrongly included trade discount was therefore paid under a mistake of law and without authority of law. On that basis, the refund claim for excess duty was maintainable and was not barred by the limitation under Rule 11.

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Issues: Whether trade discount was excludible from the assessable value for excise duty purposes, and whether a refund claim based on excess duty collected on that account was barred by limitation under Rule 11.

Analysis: The Explanation to Section 4 required trade discount to be excluded while determining assessable value. Duty paid on a valuation that wrongly included trade discount was therefore paid under a mistake of law. Since the excess duty had been collected without authority of law, the limitation under Rule 11 did not govern the refund claim.

Conclusion: The refund claim was maintainable and not barred by Rule 11; the issue was decided in favour of the assessee.

Ratio Decidendi: Excess excise duty collected on a valuation that wrongly includes trade discount is paid under a mistake of law and without authority of law, so the refund claim is not defeated by the limitation under Rule 11.

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