Excise demand cannot survive once the underlying order is set aside in appeal, making enforcement unsustainable.

A demand letter issued by the Assistant Collector could not survive once the underlying Central Excise order had been set aside in appeal, because the demand was founded entirely on that order. With the foundational order no longer in force, the legal basis for enforcement ceased to exist, and the Department's proposed challenge before the Tribunal did not preserve the demand. The impugned demand was therefore unsustainable and liable to be quashed in favour of the assessee.

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Issues: Whether the demand letter issued by the Assistant Collector could survive after the underlying excise order had been set aside in appeal, and whether the impugned demand was liable to be quashed.

Analysis: The demand was founded entirely on the order of the Superintendent, Central Excise. Once that order had been set aside in appeal, the basis for enforcing the demand ceased to exist. In these circumstances, the demand letter could not be sustained, notwithstanding the Department's proposed challenge before the Tribunal.

Conclusion: The impugned demand could not be enforced and was liable to be quashed in favour of the assessee.

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