Provisional assessment and extended limitation require express basis and disclosed suppression before balance duty can be recovered.

Mere approval of a classification list subject to the outcome of an appeal did not amount to provisional assessment because there was no express provisional order or compliance with the prescribed procedure. The notice itself invoked the extended limitation period, but the record disclosed no prima facie basis for suppression or intent to evade duty, especially where the department knew of the manufacture and clearances and the assessee acted on the operative appellate order. On that prima facie view, duty was recoverable only for the normal period, and pre-deposit of the balance duty and penalty was waived with recovery stayed pending appeal.

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Issues: Whether the duty demand was prima facie saved from limitation on the ground that the assessments were provisional and whether the extended period could be invoked for the demand and penalty, for the purpose of waiver of pre-deposit.

Analysis: The approval of the classification list subject to the outcome of the appeal did not, by itself, make the assessment provisional. There was no express order of provisional assessment, no compliance with the formalities associated with such assessment, and no material in the show cause notice or the order to support that characterisation. The notice specifically relied on the extended period under the limitation provision, and the penalty also indicated that the department itself treated the matter as one invoking the extended period. The record did not disclose any basis for alleging suppression or for justifying the extended period, particularly when the department was aware of the manufacture and clearances and the assessee had acted on the then-operative appellate order. On a prima facie view, duty was therefore payable only for the normal period preceding the notice.

Conclusion: The plea of provisional assessment was rejected at the prima facie stage, and the invocation of the extended period was not shown to be justified; pre-deposit of the balance duty and penalty was waived and recovery stayed pending appeal.

Final Conclusion: The application succeeded in part, with interim protection granted against recovery of the disputed balance demand and penalty, while leaving the appeal to be decided on merits.

Ratio Decidendi: Mere approval of a classification list subject to the result of an appeal does not, without express order and compliance with the prescribed procedure, amount to provisional assessment; invocation of the extended period requires a disclosed basis such as suppression or intent to evade duty.

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