Final assessment under Central Excise scheme may bypass Section 11A notice when demand arises from assessment finalisation.

Under the Central Excise assessment scheme, self-assessment is only the first step and the proper officer must complete final assessment on the return filed, with duty adjustments made in the account-current. The text explains that Section 11A, with its show cause requirement, applies to recovery of duty only where there is short-levy, non-levy, short-payment, or erroneous refund after final assessment. Where the impugned demand arises as part of finalisation of assessment following quashing of an earlier provisional assessment, it is not treated as a fresh recovery proceeding under Section 11A. On that basis, no prior show cause notice was required for the demand.

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Issues: Whether a show cause notice under Section 11A of the Central Excise and Salt Act was before raising the impugned duty demand after the High Court had quashed the earlier provisional assessment and directed fresh assessment.

Analysis: The demand in question arose from the process of completing assessment after the earlier provisional assessment had been set aside. Under the scheme of Section 4 and Rule 173I of the Central Excise Rules, the assessee's self-assessment is only the first step, and the proper officer must complete the assessment on the return filed by the assessee, with adjustment of duty paid and any deficiency or excess to be accounted for in the account-current. Section 11A governs recovery of duty not levied, not paid, short-levied, short-paid, or erroneously refunded, and its show cause procedure applies where such recovery is pursued after final assessment. In the present case, the subsequent demand was part of the finalisation of assessment and not a fresh proceeding for recovery under Section 11A. The Court also found no infirmity in the Tribunal's order.

Conclusion: No show cause notice under Section 11A was required for the impugned demand, and the contention of invalidity failed.

Ratio Decidendi: Where duty is determined in the course of final assessment under the excise assessment scheme, the recovery machinery of Section 11A and its prior show cause notice requirement do not apply unless there is a subsequent case of short-levy or non-levy after final assessment.

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