Provisional assessment cannot be presumed from pending classification; excise demand was barred by the ordinary limitation period.

A central excise duty demand was held time-barred because the show cause notice was issued beyond the ordinary six-month limitation under Rule 10(1), and extended limitation had not been invoked. Pending approval of a classification list did not, by itself, make the clearances provisional; provisional assessment must be established under the prescribed legal procedure and cannot be presumed from unresolved classification alone. On those facts, the notice issued after the relevant approval date was unsustainable and the demand failed as barred by limitation.

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Issues: Whether the show cause notice demanding central excise duty was barred by limitation, and whether the clearances prior to approval of the classification list could be treated as provisional assessments.

Analysis: The period in dispute related to the financial year 1978-79. The show cause notice was issued on 4 March 1980, beyond six months from the relevant approval date of 17 December 1979. The earlier view that assessments remained provisional until approval of the classification list could not be sustained in light of later decisions clarifying that provisional assessment requires the prescribed procedural basis and cannot be presumed merely because classification was pending. Since extended limitation was not invoked, the notice had to conform to the ordinary six-month period under Rule 10(1).

Conclusion: The demand was held to be time-barred and unsustainable.

Ratio Decidendi: A duty demand cannot be treated as provisional merely because a classification list is pending approval; unless provisional assessment is established in law, the ordinary limitation period under Rule 10(1) applies and a notice issued beyond that period is barred.

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