Interest on differential duty from provisional assessment is not leviable absent Section 11A(2) determination.

Interest was not leviable on differential duty arising from finalisation of provisional assessment under Rule 9B(5) because the duty was not determined under Section 11A(2) of the Central Excise Act. Rule 9B(5) permits adjustment of provisional duty against the duty finally assessed and payment or refund of the difference, but it contains no express provision for interest on the differential amount. As the prior view that Section 11A recourse was unnecessary had attained finality, and there was no finding that the assessee caused delay in finalising assessment, interest under Sections 11AA and 11AB could not be imposed.

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Issues: Whether interest was leviable on differential duty arising from finalization of provisional assessment under Rule 9B(5) of the Central Excise Rules, 1944 when the duty was not determined under Section 11A(2) of the Central Excise Act, 1944 and the show cause notice under Section 11A had been held unnecessary.

Analysis: The duty liability arose only on finalization of provisional assessment under Rule 9B(5), which provides for adjustment of the provisional duty against the duty finally assessed and payment or refund of any difference, but does not provide for levy of interest on the differential amount. The prior order holding that recourse to Section 11A was not proper had attained finality, and there was no finding that the assessee had caused the delay in finalizing assessment. Interest under Sections 11AA and 11AB was held to be linked to a duty determination under Section 11A(2), which was absent in the present case.

Conclusion: Interest was not leviable on the assessee for the differential duty arising from finalization of provisional assessment.

Ratio Decidendi: Where duty becomes payable only on finalization of provisional assessment under Rule 9B(5) and is not determined under Section 11A(2), interest under Sections 11AA and 11AB cannot be imposed in the absence of an express statutory provision.

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