Post-clearance price revision does not alter assessable value for Central Excise duty on goods already cleared.

Assessable value for Central Excise duty was determined by the price prevailing when sugar was cleared from the factory gate. A later court-directed refixation that increased the levy price did not reopen or alter the value already crystallised at clearance. The principle applied was that a post-clearance change in price, whether upward or downward, does not retrospectively affect the duty chargeable on goods as cleared. The differential amount received on subsequent refixation was therefore not includible in the assessable value for Central Excise duty.

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Issues: Whether the differential amount received on subsequent refixation of the levy price of sugar was includible in the assessable value for Central Excise duty.

Analysis: The duty liability was to be determined on the price prevailing at the time the goods were cleared from the factory gate. A later enhancement of the price pursuant to court-directed refixation did not alter the assessable value already crystallised at clearance. The principle applied was that a post-clearance change in price, whether by reduction or increase, does not retrospectively affect the duty chargeable on the goods as cleared.

Conclusion: The differential amount was not liable to Central Excise duty as part of the assessable value. The issue was decided in favour of the assessee.

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