Provisional assessment limitation under Section 11A runs from final adjustment, making an early demand notice unsustainable.

Where duty is provisionally assessed, the limitation for issuing a demand notice under Section 11A runs from the date of final adjustment after finalisation of the assessment. The provisional character of the assessment is not limited to the original ground for provisional assessment, so a demand on a different ground cannot avoid the statutory time-limit. As the notice was issued before the relevant limitation date after finalisation, it was premature and the demand could not be sustained.

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Issues: Whether the notice under Section 11A for alleged short-levy was premature when the goods had been under provisional assessment and the assessment was subsequently finalised.

Analysis: Where duty is provisionally assessed, the limitation for issuing a notice under Section 11A runs from the date of final adjustment of duty after finalisation of the provisional assessment. The provisional character of the assessment is not confined to the ground on which provisional assessment was originally resorted to, and a demand on a different ground cannot bypass the statutory time-limit. As the assessment had been finalised and the notice was issued before the relevant date for limitation purposes, the notice could not be sustained.

Conclusion: The notice was premature and the demand could not be upheld; the decision is in favour of the assessee.

Ratio Decidendi: In cases of provisional assessment, a demand under Section 11A must be issued within the prescribed limitation period computed from the date of final adjustment of duty after finalisation of the assessment.

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