Approved price list without variation clause bars excise duty refund after later sale price reduction

Where an approved excise price list contains no disclosed provision for escalation or de-escalation, a later reduction in the sale price cannot be applied retrospectively to alter the duty already fixed on the basis of the approved declaration. Decisions based on price lists with built-in variation clauses were held inapplicable on that footing. Refund of excise duty was therefore not admissible, and rejection of the refund claim was upheld.

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Issues: Whether refund of excise duty was admissible on the ground that the price of detergent powder was reduced after approval of the price list and clearance of the goods.

Analysis: The approved Part II price list did not disclose any contractual stipulation for escalation or de-escalation of price, nor did it indicate that the declared price could vary on the basis of later correspondence. In the absence of any such disclosed variation mechanism in the price list itself, the later reduction in price could not be retrospectively applied so as to alter the duty position already fixed on the basis of the approved declaration. The cited decisions dealing with price lists containing built-in provisions for price variation were therefore inapplicable.

Conclusion: The refund claim was not admissible and the rejection of the claim was . The appeal failed.

Ratio Decidendi: Where an approved price list does not disclose any provision for price escalation or de-escalation, a subsequent reduction in the sale price does not entitle the assessee to refund of duty already paid on the approved declared price.

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