Refund of provisionally collected excise duty on Maida followed after later exemption notification neutralised the levy.

Excise duty collected provisionally on Maida was later neutralised by an exemption notification covering the same levy cycle, and the refund was held payable on that basis. The issue was treated as governed by the Madhya Pradesh High Court decision on identical facts, and no contrary authority was shown for the Department. The appellants were therefore entitled to refund of the duty collected for the relevant period, with consequential relief following.

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Issues: Whether the appellants were entitled to refund of excise duty collected on Maida during the period when duty was provisionally levied but the commodity was later exempted.

Analysis: Duty had been collected for the relevant period under the provisional collection mechanism, but an exemption notification was issued thereafter withdrawing the levy on Maida. The issue was treated as covered by the decision of the Madhya Pradesh High Court on identical facts, and no contrary decision was brought to notice on behalf of the Department.

Conclusion: The appellants were entitled to refund of the duty collected for the relevant period.

Final Conclusion: The appeal succeeded and the appellants obtained consequential relief.

Ratio Decidendi: Where duty collected under provisional collection is later neutralised by an exemption notification in the same levy cycle, refund follows in the absence of a contrary binding authority.

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