Provisional excise assessment allowed final duty recovery without separate Section 11A notice when clearances were properly recorded as provisional.

Where clearances were made on a provisional assessment basis, supported by B-13 bonds and RT-12 records noting provisional assessment, the revenue could finalise the assessment and recover the balance duty on completion of the dispute. Rule 9B did not require a separate written order in every case where provisional clearance was permitted and followed accordingly. The ordinary limitation principles under Section 11A for non-provisional demands did not govern such recovery, so a separate notice under Section 11A was not required. The issue was decided against the assessee.

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Issues: Whether the yarn cleared for captive consumption during the relevant period was under provisional assessment, and if so, whether the revenue could finalise the assessment and recover duty without issuing a notice under Section 11A of the Central Excise Act, 1944.

Analysis: The clearance was made under a pending dispute and the assessee executed B-13 bonds applicable to provisionally assessed goods. The assessment memoranda on the RT-12 returns also recorded that the clearances were assessed provisionally. Rule 9B of the Central Excise Rules, 1944 did not require a separate written order in every case if the proper officer permitted provisional clearance and the goods were cleared accordingly. The authorities therefore treated the clearances as provisional assessments, and the later finalisation of assessment after the dispute was concluded did not attract the limitation principles governing non-provisional assessments. The cases relied on by the assessee were distinguished because they dealt with situations where provisional assessment was not established on the record.

Conclusion: The clearances were under provisional assessment, and the revenue was entitled to finalise the assessment and recover the balance duty without a separate notice under Section 11A. The issue is decided against the assessee.

Ratio Decidendi: Where clearances are effected on provisional assessment basis under the applicable excise procedure and are supported by the bond and assessment records, the duty becomes recoverable upon finalisation of assessment and the limitation rule governing ordinary demand proceedings under Section 11A does not control such recovery.

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