Provisional assessment finalisation cannot be reopened in quantification proceedings, and Section 11A(1) limitation does not apply.

Once provisional assessment is finally determined, the appellate authority cannot reopen the merits of that finalisation in subsequent quantification proceedings, including by treating the earlier order as ex parte or by re-agitating the admissibility of discounts. The article also states that a show cause notice issued only for quantification of duty consequential to finalisation of provisional assessment is not governed by the normal limitation period under Section 11A(1) of the Central Excise Act, 1944. On that basis, the quantification notice was treated as valid and the order confirming the demand was restored.

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Issues: (i) Whether the Commissioner (Appeals) could reopen the finalisation of provisional assessment and deny the duty demand on the ground that the earlier order was ex parte or that discounts were inadmissible; (ii) Whether the notice issued for quantification of duty after finalisation of provisional assessment was barred by limitation under Section 11A(1) of the Central Excise Act, 1944.

Issue (i): Whether the Commissioner (Appeals) could reopen the finalisation of provisional assessment and deny the duty demand on the ground that the earlier order was ex parte or that discounts were inadmissible.

Analysis: The duty demand arose after the Assistant Commissioner had already finalised the provisional assessment and directed quantification of the differential duty. That finalisation had been upheld in appeal, and a further appeal had also been dismissed. In those circumstances, the Commissioner (Appeals) had no basis to reopen the merits of the finalised assessment by questioning the earlier order as ex parte or by re-examining the admissibility of discounts in the quantification proceedings.

Conclusion: The Commissioner (Appeals) was not entitled to reopen the finalisation of provisional assessment, and the demand could not be set aside on that ground.

Issue (ii): Whether the notice issued for quantification of duty after finalisation of provisional assessment was barred by limitation under Section 11A(1) of the Central Excise Act, 1944.

Analysis: The show cause notice was issued only for quantification of duty consequential to the finalisation of provisional assessment. Where assessment is provisional, the limitation period prescribed under Section 11A(1) does not apply to the quantification proceedings. The Commissioner (Appeals) was therefore incorrect in holding the notice time-barred.

Conclusion: The notice was not barred by limitation under Section 11A(1).

Final Conclusion: The impugned order was unsustainable, the order confirming the demand was restored, and the Revenue's appeal succeeded.

Ratio Decidendi: Once provisional assessment has been finally determined and the only subsequent step is quantification of the duty consequential to that finalisation, the appellate authority cannot reopen the merits of the final assessment, and the normal limitation under Section 11A(1) does not govern such quantification proceedings.

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