Excise duty refund for later price reduction fails without provisional assessment and a recognised basis to alter duty liability.

Refund of excess excise duty on goods cleared under a price basis later reduced was held inadmissible because the assessee did not seek provisional assessment under Rule 9B of the Central Excise Rules, 1944. The RT-12 assessments were final, and there was no material showing compliance with the provisional assessment procedure. The subsequent price reduction therefore did not alter the duty liability, and the claim also failed on the principle that a later reduction in price does not by itself justify refund unless there is a legally recognised arrangement for duty adjustment.

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Issues: Whether refund of excess excise duty was admissible when the goods were cleared on a price basis later reduced, but no provisional assessment was sought under the prescribed procedure.

Analysis: The agreement contained a price variation clause, but the assessee knew of this position at the time of clearance and did not make any formal request for provisional assessment under Rule 9B of the Central Excise Rules, 1944. The RT-12 assessments were final, and no material showed compliance with the provisional assessment procedure. The claim for refund on account of subsequent price reduction therefore failed on this ground. The matter was also held to be covered by the principle that subsequent reduction in price does not affect excise duty liability unless there is a specific arrangement with the Government to refund duty; the contrary views in other Tribunal decisions were not followed.

Conclusion: The refund claim was not admissible, and the assessee's challenge failed.

Final Conclusion: The duty refund was rightly disallowed, and the appeal was dismissed.

Ratio Decidendi: Refund of excise duty on account of subsequent price reduction is not maintainable unless the assessee establishes compliance with the provisional assessment procedure and a legally recognised basis for alteration of duty liability.

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