Provisional assessment bars Section 11A recovery notice until finalisation; premature show cause notice held void.

Where duty liability arose during a period of provisional assessment under Rule 9B of the Central Excise Rules, a show cause notice under Section 11A of the Central Excise Act was not maintainable until the assessment was finalised and duty adjusted. The limitation framework and recovery mechanism under Section 11A were linked to completion of the provisional assessment, so notice issued before final assessment did not fit the statutory scheme for short levy or short payment. The notice was held ab initio void, the impugned order was set aside, and consequential relief followed.

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Issues: Whether a show cause notice issued under Section 11A of the Central Excise Act, 1944 was maintainable when provisional assessment under Rule 9B of the Central Excise Rules, 1944 had not yet been finalized.

Analysis: The liability sought to be recovered arose during the period when the assessees were admittedly under provisional assessment. In such a situation, the relevant date for limitation and the commencement of proceedings under Section 11A is linked to final assessment and adjustment of duty. A notice issued before completion of provisional assessment does not satisfy the statutory scheme governing recovery of short levy or short payment. The pending provisional assessment therefore prevented valid invocation of Section 11A at that stage.

Conclusion: The show cause notice was ab initio void and not maintainable, and the impugned order was set aside with consequential relief to the assessees.

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