Provisional excise assessment bars show cause notice until final adjustment; limitation runs only after final assessment.

Section 11-A of the Central Excise Act, 1944 applies to recovery of duty not levied, not paid, short-levied, short-paid, or erroneously refunded, and in provisional assessment cases the limitation period runs from the date of adjustment after final assessment. Rule 9B of the Central Excise Rules, 1944 treats the levy as provisional until assessment is completed and duty is finally adjusted. On that scheme, a show cause notice under Section 11-A cannot validly be issued before completion of provisional assessment and final assessment, and notices issued before finalisation were held to be unsustainable.

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Issues: Whether a show cause notice under Section 11-A of the Central Excise Act, 1944 can be issued before completion of provisional assessment and final assessment under Rule 9B of the Central Excise Rules, 1944.

Analysis: Section 11-A applies to recovery of duty not levied, not paid, short-levied, short-paid, or erroneously refunded, and the limitation period in a case of provisional assessment runs from the date of adjustment of duty after final assessment. Rule 9B contemplates a provisional levy only pending completion of assessment, and the liability is finally determined only when the assessment is completed and the duty is adjusted. On this scheme, initiation of proceedings under Section 11-A before finalization of the provisional assessment is not permissible.

Conclusion: The show cause notices issued before completion of final assessment were illegal and could not be sustained.

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