Approved price lists cannot be reopened as short levy without prior challenge to the approval, and Rule 10 does not apply.

Excise duty assessed on the basis of approved price lists or classification lists cannot be reopened as a short levy unless the approval is first challenged by show-cause notice. Where the approved classification remains unchallenged, the assessment is treated as the correct levy, differential duty cannot be recovered as short levy, and Rule 10 does not apply. On that footing, the demand for differential duty was held not sustainable and the appeal failed.

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Issues: Whether excise duty cleared on the basis of approved price lists or classification lists could be reopened and differential duty recovered as a short levy in the absence of a prior challenge to the approval by show-cause notice, and whether Rule 10 applied to such a demand.

Analysis: The clearances during the relevant period were made on the basis of approved price lists. The governing principle applied was that levy on the basis of an approved classification list remains the correct levy until the approval is questioned by issuance of a show-cause notice. Once the approval is not challenged in that manner, the case is not treated as a short levy. On that footing, differential duty cannot be recovered as a short levy and Rule 10 has no application.

Conclusion: The demand for differential duty was not sustainable and the appeal failed.

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