Provisional assessment remains provisional for all purposes, so refund limitation runs only from finalisation.

A provisional assessment under Rule 9B read with Rule 173J of the Central Excise Rules, 1944 retains that character for all purposes until finalisation, and limitation for a refund claim under Rule 11 begins only from the date the assessment is finally completed. The assessment cannot be treated as provisional for one ground and final for another, because the controlling factor is the ultimate character of the assessment order. The Court followed the view that provisional assessment remains provisional for every purpose, including refund claims based on a different ground from the one that led to provisional assessment.

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Issues: Whether a provisional assessment under Rule 9B read with Rule 173J of the Central Excise Rules, 1944 remains provisional for all purposes, so that limitation for a refund claim under Rule 11 begins only from the date of finalisation of the assessment, even if the refund claim is based on a ground different from the one that led to provisional assessment.

Analysis: The assessment was held to be either provisional or final as a whole. If the assessment is provisional, it retains that character for every purpose and cannot be treated as final for a matter not separately considered. The controlling factor is the ultimate character of the assessment order, and a provisional assessment is not confined to the particular ground on which it was initially made provisional. The Court followed the earlier view that provisional assessment is provisional for all purposes, including refund claims.

Conclusion: The question was answered in the affirmative in favour of the assessee and against the Revenue. Limitation for the refund claim commenced from the date of finalisation of the provisional assessment.

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