Excise duty refund barred where later price reduction did not alter duty fixed on clearance

Excise duty liability was fixed at the time of removal of goods from the factory gate on the declared and approved classification and price. A later reduction in price, including where part of the contracted goods was supplied in non-standard length at a reduced price, did not alter the duty already payable on clearance. The refund claim based on the subsequent price adjustment was therefore not maintainable, and rejection of refund was upheld.

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Issues: Whether the assessee was entitled to refund of excise duty on the ground that a revised price list was not filed and part of the contracted goods were supplied in non-standard length at a reduced price.

Analysis: The duty liability was determined on the basis of the classification and price declared and approved at the time of removal of the goods from the factory gate. A later reduction in price, for whatever reason, did not affect the duty already payable on clearance. The same principle governed the claim for refund arising from the subsequent price adjustment.

Conclusion: The refund claim was not maintainable and the rejection of refund was in law, against the assessee.

Final Conclusion: The appeal failed and the order rejecting refund was sustained.

Ratio Decidendi: Excise duty liability is fixed at the time of removal on the declared and approved price, and a subsequent reduction in price does not entitle the assessee to refund of duty already paid.

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