Provisional assessment on pending classification list permits later recovery of differential duty despite no bond or limitation objection.

Clearances made while a classification list remains unapproved are treated as provisional where the assessee knows the classification dispute is still pending. In that situation, Rule 173CC permits removal pending approval, and the duty paid on such clearances is treated as provisionally assessed under Rule 9B. The absence of a bond does not by itself convert the clearances into final assessments or defeat later adjustment of duty after final classification. Where the assessee has notice of the dispute and participates in the classification proceedings, differential duty may be quantified after finalisation, and objections based on absence of a show cause notice and limitation are not sustained.

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Issues: Whether the assessee's clearances pending approval of the classification list were to be treated as provisional, and whether the subsequent demand for differential duty was barred for want of a show cause notice and limitation.

Analysis: The classification list had not been finally approved when the goods were cleared, and the assessee knew that the proper classification was still under dispute. Rule 173CC permitted removals pending approval of the classification list, and the duty paid on such clearances was to be treated as duty assessed provisionally under Rule 9B. The absence of a bond, though contemplated by the rule after the initial period, did not convert the clearances into final assessments or create any legal basis to treat the duty as finally assessed. Since the assessee had been put on notice and participated in the classification proceedings, the later quantification of duty after finalisation of classification was valid, and the plea that the demand was barred by limitation was untenable.

Conclusion: The demand for differential duty was maintainable, and the objection based on absence of notice under Section 11A and limitation failed. The assessee's challenge was rejected and the Revenue's appeals succeeded.

Final Conclusion: Pending approval of the classification list, the clearances were treated as provisional, enabling recovery of differential duty after final classification.

Ratio Decidendi: Where clearances are made while the classification list remains unapproved and the assessee is aware of the pending classification dispute, the assessment is provisional in law and differential duty may be recovered after finalisation notwithstanding the absence of a bond or the argument of limitation.

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