Provisional excise assessment excess payment supported interim stay without pre-deposit under the differential duty rule.

In provisional assessment under the Central Excise Rules, 2002, Rule 7(2) requires the assessee to pay only the difference between the duty finally assessed and the duty provisionally assessed. Where the duty paid on provisional assessment exceeded the final duty, that factual position supported interim relief on a prima facie basis. The differential being in favour of the assessee, the request for stay was granted without insisting on pre-deposit.

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Issues: Whether, in a case of provisional assessment under the Central Excise Rules, 2002, the assessee was entitled to interim stay without pre-deposit where the duty finally assessed was less than the duty provisionally assessed.

Analysis: The amount of duty paid on provisional assessment was higher than the amount finally assessed, and that factual position was not disputed. Rule 7(2) binds the assessee in provisional assessment to pay the difference between the duty finally assessed and the duty provisionally assessed. On that basis, the application for interim relief was examined only prima facie, and the existence of a differential in favour of the assessee supported grant of stay without insisting on pre-deposit.

Conclusion: Interim stay without pre-deposit was granted in favour of the assessee.

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