Central excise refund unavailable after post-clearance price reduction where duty was not provisionally assessed

In central excise, duty is determined by the price and classification declared at the time of clearance from the factory, and a later reduction in price does not alter the duty already payable. In the absence of provisional assessment, a subsequent fall in price does not provide a valid basis for refund. The refund claim was therefore not maintainable and was rightly rejected.

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Issues: Whether refund was admissible where the duty had been paid on the price prevailing at the time of removal of goods and the price was reduced subsequently, in the absence of provisional assessment.

Analysis: Duty liability in central excise is determined with reference to the price and classification declared at the time of clearance from the factory. Where the assessee clears goods on that basis, a later reduction in price does not affect the duty already payable. In the absence of provisional assessment, a subsequent fall in price does not furnish a ground for refund.

Conclusion: The refund claim was not maintainable and was rightly rejected.

Final Conclusion: The appeals failed because the duty was correctly assessed on the clearance price and no provisional assessment existed to support a later refund claim.

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