Finalised provisional assessments defeated the excise duty demand where excess duty was adjusted against short payment.

Where provisional excise assessments had already been finalised and that finding was not challenged by the Revenue, the Tribunal held there was no basis to sustain the demand. The dispute arose from the assessee's adjustment of excess duty against short-paid duty after finalisation, and the department had itself sought details for completing the assessments. In the absence of any successful challenge to the finalisation finding, the Revenue's objection to the Commissioner (Appeals)'s order failed and the demand was held not sustainable.

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Issues: Whether the demand of central excise duty was sustainable where the assessee adjusted excess duty against short-paid duty after provisional assessments had been finalised.

Analysis: The provisional assessments were held to have been finalised, and that finding was not challenged by the Revenue by appeal or cross-objection. The record also showed that the department had sought details for finalisation of the assessments and that the dispute arose from the assessee's adjustment of excess duty against short payment. In these circumstances, and in the absence of any successful challenge to the finding on finalisation, the Tribunal found no merit in the Revenue's objection to the Commissioner (Appeals)'s order.

Conclusion: The demand was not sustainable against the assessee and the Revenue's appeal failed.

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