Withdrawal of invoice-based clearance permission requires clear justification; duty shortfall recovery remains available where declared price is undervalued.

Rule 173C(11) of the Central Excise Rules, 1944 permits removal of goods on declared invoice prices where the nature of the goods or frequent market fluctuations justify it, and the same power includes withdrawal of that permission if circumstances change or the concession is being abused to the detriment of revenue. However, the proviso also preserves the normal remedy of reassessment and recovery of any duty shortfall where the declared price does not reflect value under Section 4 of the Central Excise Act, 1944. On the facts noted, the basis for revocation was not shown with sufficient clarity, so withdrawal was not justified, while the Revenue's right to recover any balance duty remained unaffected.

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Issues: Whether the permission granted under Rule 173C(11) of the Central Excise Rules, 1944 to remove goods on the basis of invoices could be withdrawn on the facts of the case.

Analysis: Rule 173C(11) permits the competent authority to allow removal of goods on declared prices having regard to the nature of the goods or frequent fluctuations in market price. The power to grant such permission carries with it the power to withdraw it when the relevant circumstances change or where the concession is being grossly abused to the detriment of revenue. At the same time, the proviso to the rule provides the normal remedy of reassessment and recovery of any duty shortfall where the declared price does not represent the value under Section 4 of the Central Excise Act, 1944. On the record, the factual basis for revocation was unclear and the extent of any discrepancy was not shown with sufficient clarity.

Conclusion: The withdrawal of permission was not justified on the facts, though the Revenue's right to recover any balance duty remained unaffected.

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