Provisional assessment adjustment permits excess duty to be set off against short-paid duty without separate refund proceedings.

On finalisation of provisional assessments under Rule 9B of the Central Excise Rules, 1944, excess duty paid during the provisional period may be adjusted against duty short-paid, rather than being first routed through a refund claim under Section 11B of the Central Excise Act, 1944. The Tribunal followed its earlier view in the assessee's own case and accepted the later majority position that such set-off is permissible at the stage of finalisation. The Revenue's objection that refund proceedings and unjust enrichment had to be examined first was rejected, and the orders allowing adjustment were affirmed.

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Issues: Whether, on finalisation of provisional assessments under Rule 9B of the Central Excise Rules, 1944, excess duty paid during the provisional period could be adjusted against duty short-paid without first routing the excess through refund proceedings under Section 11B of the Central Excise Act, 1944 and examining unjust enrichment.

Analysis: The Tribunal followed its earlier order in the respondent's own case for a different period and applied the view that, on finalisation of provisional assessments, the excess duty paid and the short-paid duty are to be adjusted against each other. The order relied on the later majority view that such adjustment is permissible at the stage of finalisation, and the Revenue's objection based on the need to first claim refund and establish absence of unjust enrichment was not accepted for the present appeals.

Conclusion: The adjustment of excess duty against short-paid duty at the time of finalisation of provisional assessments was held permissible, and the Revenue's appeals were rejected.

Final Conclusion: The impugned orders allowing set-off of excess duty against the duty short-paid on finalisation of provisional assessments stood affirmed, and the Revenue obtained no relief.

Ratio Decidendi: On finalisation of provisional assessments, excess duty and short-paid duty may be adjusted against each other, and the excess need not invariably be compelled into a separate refund process before such adjustment is permitted.

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