2007 (9) TMI 706 - HC - Central Excise

CESTAT upholds demands on finalization of provisional assessment, dismissing appeal against captive consumption order.

The Court dismissed the appeal against the CESTAT order regarding provisional assessment and demands for captive consumption, citing a previous judgment. ... Provisional assessment - finalisation of provisional assessment - clearance for captive consumption under bond (B-13) - endorsement on returns recording provisional assessment (RT-12) - application of precedentProvisional assessment - finalisation of provisional assessment - clearance for captive consumption under bond (B-13) - endorsement on returns recording provisional assessment (RT-12) - Validity of demands raised on finalisation of provisional assessments where yarn was cleared for captive consumption under B-13 bond and RT-12 returns bore endorsements that assessments were provisional. - HELD THAT: - The Court accepted counsel's concession that the present case is governed by the earlier decision in Jamshri Ranjit Singhji Spg. & Wvg. & Mills Co. Ltd. (supra). On the material facts of this case, yarn had been cleared for captive consumption upon execution of B-13 bonds and the RT-12 returns contained endorsements recording that the assessments were provisional. In those circumstances, the revenue's action in raising demands upon finalisation of the provisional assessments was upheld. The Court therefore applied the reasoning of the earlier decision to hold that the demands could not be faulted. [Paras 3]Appeal dismissed; demands confirmed as valid on finalisation of the provisional assessments.Final Conclusion: The appeal was dismissed applying the Court's earlier decision in Jamshri Ranjit Singhji Spg. & Wvg. & Mills Co. Ltd. (supra); demands raised on finalisation of provisional assessments in respect of yarn cleared for captive consumption under B-13 bond with RT-12 provisional endorsements are valid. Issues involved: Appeal against CESTAT order regarding provisional assessment and demands raised for captive consumption.Provisional Assessment Issue:The appeal was directed against the CESTAT order dated 22/2/2006. The appellant's counsel acknowledged that the basic question raised in the appeal is covered by a previous judgment of the High Court in Central Excise Appeal No.2597 of 2005. The Court noted that in both cases, yarn was cleared for captive consumption under a B-13 Bond with provisional assessments, and thus the demands raised on finalization of the provisional assessment were deemed valid based on the previous judgment.Final Decision:The Court, in line with the precedent set in the previous case, dismissed the present appeal with no order as to costs. The judgment emphasized the validity of demands raised against the appellant upon finalization of provisional assessments for goods cleared for captive consumption.