Provisional assessment under price variation clauses keeps refund claims outside the ordinary limitation period.

Contracts governed by DGS&D rates and containing an express price variation clause were treated as involving provisional assessment, because the declared price at clearance was subject to later revision and differential duty was paid on price increases. On that basis, the six-month limitation under section 11B did not apply in the manner assumed by the lower authorities, and the refund claims were held not to be time-barred.

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Issues: Whether refund claims arising from contracts containing a price variation clause were barred by limitation under section 11B of the Central Excises Act, 1944.

Analysis: The contracts were entered into on the basis of DGS&D rates and expressly contained a price variation clause. The price declared at the time of clearance was subject to later revision, and differential duty was paid when prices increased. In these circumstances, the approval of the price lists and the assessment had to be treated as provisional. Where the assessment is provisional, the six-month limitation under section 11B does not apply in the manner assumed by the lower authorities.

Conclusion: The refund claims were not barred by limitation and the finding of time-bar was set aside.

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