Provisional assessment allows adjustment of excess duty against short-paid duty, while the duty quantum may still require remand.

In provisional assessment cases, excess duty paid in some clearances may be adjusted against short-paid duty arising on finalization, absent any express statutory bar, especially where the adjustment is made after finalization of assessment. The text also notes that if the arithmetical computation of the short-paid duty has not been properly examined by the original authority, the matter may be remanded for fresh determination of the correct quantum. The commentary thus treats set-off of excess and short-paid duty as legally permissible on the stated facts, while leaving the exact duty calculation open for reconsideration.

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Issues: (i) Whether short-paid duty arising on finalization of provisional assessment could be adjusted against excess duty already paid; (ii) whether the matter required remand for fresh computation of the short-paid duty amount.

Issue (i): Whether short-paid duty arising on finalization of provisional assessment could be adjusted against excess duty already paid.

Analysis: The assessments were provisional and were finalized after the disputed period. The Court found no statutory prohibition against adjusting excess duty paid in some clearances against short-paid duty in others, particularly when the adjustment was made immediately after finalization. The Court also noted that the Tribunal had previously accepted the same principle in similar factual settings.

Conclusion: Yes. The short-paid duty could be adjusted against the excess duty paid, and the contrary finding was set aside in favour of the assessee.

Issue (ii): Whether the matter required remand for fresh computation of the short-paid duty amount.

Analysis: A worksheet placing a different computation of the short-paid duty was produced for the first time at the hearing. The Court held that the correctness of the arithmetical computation had not been examined by the original authority and needed reconsideration at that stage.

Conclusion: Yes. The matter was remanded to the original authority for fresh determination of the correct duty amount after due consideration of the computation.

Final Conclusion: The assessee succeeded on the legal entitlement to set off excess duty against short-paid duty, but the quantum of short-paid duty was sent back for fresh adjudication.

Ratio Decidendi: In provisional assessment cases, where excess duty and short-paid duty arise from the same finalized assessment period, adjustment of one against the other is permissible absent any express statutory bar, and a remand may be ordered for recalculation of the correct duty quantum.

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