Provisional assessment and limitation under Section 11A: short-levy demand held prima facie time-barred after final adjustment.

In provisional assessment cases, finalisation that determines admissibility of deductions, quantifies duty payable, and fixes any short payment can set the relevant date for limitation under Section 11A at the date of final adjustment. Where no notice demanding short levy is issued within six months from that date, a departmental demand for alleged short levy is prima facie time-barred. The appellate framework therefore requires strict compliance with the statutory time limit for demands of duty not levied, short levied, or short paid, and on that basis unconditional stay of the additional duty demanded may be warranted.

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Issues: Whether, in the case of provisional assessment, the departmental demand for alleged short levy was barred by limitation and whether unconditional stay of the additional duty demanded was warranted.

Analysis: The provisional assessments were held to have been finalised by the Assistant Collector's order, which not only decided the admissibility of deductions but also quantified the duty payable and fixed the short payment. The amount so determined had already been paid and adjusted, so the relevant date for limitation under Section 11A was the date of final adjustment after such finalisation. Since no notice demanding the alleged short levy had been issued within six months from that date, the further demand raised by the department prima facie attracted the bar of limitation. The procedure under the appellate provisions also required adherence to the statutory time limit for demanding duty not levied, short levied, or short paid.

Conclusion: The demand was prima facie time-barred and the assessee was entitled to unconditional stay of the duty demanded.

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