Provisional assessment allows netting excess duty against short-paid duty at finalisation, without an unjust enrichment bar.

On finalization of provisional assessment, excess duty paid on some clearances may be adjusted against duty short paid on other clearances, because the assessment has to be worked out for the goods as a whole. At that stage, the duty liability is determined after netting excess payment against short payment, and unjust enrichment does not bar the adjustment. The settled view relied on prior decisions supporting this approach, and the adjustment was held permissible in favour of the assessee.

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Issues: Whether, on finalization of provisional assessment, excess duty paid on some clearances can be adjusted against duty short paid on other clearances without first examining unjust enrichment.

Analysis: The issue was treated as settled. At the stage of finalizing provisional assessment, the entire assessment has to be worked out for the goods as a whole, and the duty liability is to be determined after adjusting excess duty paid against short payment. The authorities relied on prior decisions taking the same view and held that unjust enrichment did not bar such adjustment at that stage.

Conclusion: The adjustment of excess duty against short-paid duty on finalization of provisional assessment is permissible. The issue is decided in favour of the assessee.

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