Proper show cause notice and jurisdiction are essential before excise duty demand can be finalised or sustained.

A duty demand cannot be sustained on a mere departmental letter where the excise scheme requires a proper show cause notice, quantification after hearing, and compliance with natural justice. The text also states that a Superintendent lacks authority to finalise assessment in the manner attempted, particularly after the relevant amendment to the assessment procedure. Even where clearances are treated as provisional, finalisation must be carried out by the proper officer, not by an officer without jurisdiction. The impugned demand action is therefore described as invalid as a matter of procedure and authority.

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Issues: Whether the Superintendent of Central Excise could validly issue the demand letter and quantify duty without resorting to a regular show cause notice under the governing excise procedure, and whether the impugned action could be sustained as a finalisation of assessment or provisional assessment.

Analysis: The demand was founded on a mere letter issued by the Range Superintendent, without a regular notice under the statutory scheme governing short levy or non-levy. The legal position applied was that quantification of duty affecting the assessee must follow the prescribed notice-and-hearing procedure, consistent with natural justice and the statutory requirement under the excise law. The record also showed that the Superintendent had no authority to finalise assessments in the manner attempted, particularly after the relevant amendment to the assessment procedure. Even if the clearances were treated as provisional, finalisation was required to be undertaken by the proper officer and not by the Superintendent. The impugned letter therefore could not be upheld as a valid assessment or finalisation order.

Conclusion: The demand letter and the order sustaining it were unsustainable, and the assessee's challenge succeeded.

Final Conclusion: The impugned demand action was set aside, and the appeal was allowed.

Ratio Decidendi: A duty demand affecting the assessee cannot be sustained on a mere departmental letter where the statute requires a proper notice and adjudication, and an officer lacking jurisdiction cannot validly finalise assessment or provisional assessment.

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