Revised excise price list effective from the purchaser agency's lower-price date, with consequential relief granted.

The revised Part II price list for Government and semi-Government sales was to take effect from 1.3.1978, because the lower prices were fixed by the purchaser agency and were actually realised from that date. The assessee did not unilaterally alter prices and forwarded the revised price list to the excise authorities promptly after receiving intimation. As no irregularity or objectionable feature was found in the transactions, it was unjust to assess excise duty on higher prices when only reduced prices were being realised from the effective date. Consequential relief followed.

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Issues: Whether the revised Part II price list for Government and semi-Government sales was required to be given effect from 1.3.1978, the date from which the purchaser agency reduced the price, or only from 29.3.1978, the date on which the Assistant Collector received it.

Analysis: The price revision was not made unilaterally by the assessee but resulted from a downward revision by the Director General of Supplies and Disposals for a separate class of buyers. The reduced prices were actually realised from 1.3.1978, and the assessee forwarded the revised price list to the central excise authorities as soon as the intimation was received. No irregularity or objectionable feature in the transactions was found, and it was held unjust to base excise duty on higher prices when only reduced prices were being realised from the effective date of the purchaser agency's revision.

Conclusion: The revised Part II price list was to be accepted with effect from 1.3.1978, and the assessee was entitled to consequential relief.

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