Show cause notice is mandatory before enhancing excise duty on provisionally permitted clearances; RT-12 remarks cannot replace it.

Additional excise duty could not be imposed on provisionally permitted clearances merely through RT-12 assessment remarks. Where clearances had earlier been allowed at a fixed provisional rate, the assessee was entitled to a show cause notice and a personal hearing before any higher duty liability was fastened. The note treats RT-12 entries as insufficient to replace the statutory notice requirement, and states that the enhanced demand was set aside because those procedural safeguards were not followed.

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Issues: Whether the demand of additional excise duty raised on RT-12 assessment could be sustained without issuing a show cause notice and affording a personal hearing, when the clearances had earlier been provisionally permitted at a fixed rate.

Analysis: The demand was not treated as a routine finalisation of an approved classification or price list. The clearances had been provisionally allowed at Rs. 15,000 per vehicle, and the Superintendent later fastened a higher duty liability on the assessee by assessing the RT-12 returns. In such a situation, before imposing additional duty, the assessee was entitled to notice and an opportunity of hearing. Remarks made on RT-12 returns could not substitute for a show cause notice.

Conclusion: The additional duty demand was not sustainable without show cause notice and personal hearing, and the appeal succeeded.

Final Conclusion: The impugned demand was set aside and the assessee obtained relief against the enhanced duty liability.

Ratio Decidendi: Where additional duty is sought to be imposed on a provisionally permitted clearance, compliance with the requirement of show cause notice and opportunity of hearing is mandatory, and RT-12 remarks cannot replace such notice.

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