Provisional assessment under excise law delays Section 11A recovery until final assessment crystallises duty liability.

Under the Central Excise Act and Rule 9B, provisional assessment is only an interim step followed by final assessment and adjustment of duty. Section 11A recovery proceedings for duty not levied, short-levied, short-paid, or wrongly refunded can be initiated only after the liability is crystallised on final assessment, because the relevant date for limitation in provisional assessment cases is the date of adjustment after finalisation. On that basis, show cause notices issued before completion of final assessment were held invalid, and the assessee's challenge succeeded.

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Issues: Whether a show cause notice under Section 11A of the Central Excise Act, 1944 can be issued before completion of provisional assessment and final assessment under Rule 9B of the Central Excise Rules, 1944.

Analysis: Section 11A applies to recovery of duty not levied, short-levied, short-paid, or erroneously refunded, and the limitation period runs from the relevant date. In cases of provisional assessment, the relevant date is the date of adjustment of duty after final assessment. Rule 9B contemplates provisional assessment only as an interim measure, followed by final assessment and adjustment of duty. The statutory scheme shows that liability becomes crystallised only on final assessment, and proceedings for recovery under Section 11A cannot be initiated before that stage. The earlier decision relied upon by the Tribunal was treated as laying down the same principle.

Conclusion: The show cause notices issued before completion of final assessment were invalid and the assessee's challenge succeeded.

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