Provisional assessment finalisation needs verifiable month-wise computation and proper adjustment of excess duty paid.

Finalisation of provisional assessment under Rule 7 of the Central Excise Rules, 2002 required clear disclosure of the month-wise computation and the basis for adopting an averaged component cost, especially where the goods comprised multiple horn varieties with differing input costs. The record did not adequately explain the figures or verify whether excess duty already paid in some months had been properly adjusted against any differential demand. As the existing material was insufficient to test the correctness of the computation, the matter was remanded to the original authority for de novo consideration, with opportunity to produce additional evidence and a direction to complete the exercise expeditiously.

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Issues: Whether the finalization of provisional assessment on a month-wise basis, with adoption of an averaged component cost and without clear disclosure of the basis of computation, as well as without due consideration of excess duty already paid, required interference and reconsideration.

Analysis: The appeal arose from finalization of provisional assessment under Rule 7 of the Central Excise Rules, 2002. The record did not clearly explain how the month-wise figures were derived or how the uniform component cost was arrived at, even though the goods consisted of multiple horn varieties with widely varying input costs. The claim that excess duty paid in some months should be adjusted against the differential demand also required examination on the basis of proper records. Since the existing material was insufficient to verify the correctness of the computation and the manner in which the provisional assessment had been finalized, the matter needed a fresh look by the original authority.

Conclusion: The matter was remanded to the original authority for de novo consideration with opportunity to the appellant to produce additional evidence and with directions to complete the exercise expeditiously.

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