Assessable value under central excise excludes inspection charges where binding determination applies, making excess duty refundable.

Inspection charges were held not includible in the assessable value for central excise where a binding determination had already excluded them. Duty was therefore payable only on the lower assessable value, and any duty collected by adding inspection charges was excess duty. On that basis, refund of the excess duty was justified and the Revenue's challenge failed.

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Issues: Whether inspection charges were includible in the assessable value for central excise duty and whether refund of excess duty paid on that basis was admissible.

Analysis: The manufacturer had already obtained a binding determination that inspection charges were not to be added to the assessable value. Once that position governed the parties, duty could be levied only on the lesser assessable value excluding such charges. The authorities below correctly accepted that the earlier inclusion of inspection charges had resulted in excess duty payment, and the refund granted on that basis was justified.

Conclusion: Inspection charges were not includible in the assessable value, and the refund of excess duty was correctly allowed.

Final Conclusion: The Revenue's challenge failed, and the refund order in favour of the manufacturer stood affirmed.

Ratio Decidendi: Where a binding determination excludes inspection charges from assessable value, central excise duty must be assessed on the value without such charges, and any duty collected on the higher value is refundable as excess duty.

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