2000 (6) TMI 224 - AT - Central Excise

Tribunal Upholds Provisional Assessment Decision

LIBERTY ENTERPRISES Versus COMMISSIONER OF CENTRAL EXCISE, NEW DELHI

LIBERTY ENTERPRISES Versus COMMISSIONER OF CENTRAL EXCISE, NEW DELHI - 2000 (120) E.L.T. 434 (Tribunal) Issues:1. Whether the assessment is provisional or final.Analysis:The appeal filed by M/s. Liberty Enterprises raised the issue of whether the assessment conducted was provisional. The appellant, represented by Shri R. Pal Singh, argued that the assessment was not provisional during the period in question. The appellant manufactured footwear and was issued a show-cause notice demanding central excise duty. The Commissioner Central Excise dropped one part of the demand but did not express any view on the remaining demand. The appellant contended that the assessment was final, not provisional, during the relevant period. The appellant highlighted that the department invoked an extended period of limitation in the show cause notice, implying final assessment. The appellant argued that if the assessment was provisional, Section 11 A of the Central Excise Act would not apply until after finalization of the provisional assessment.On the other hand, Shri P.K. Jain, representing the respondents, argued that once the Assistant Commissioner ordered provisional assessment in a previous order, all subsequent assessments would also be provisional. The argument was that even though a new price declaration was filed by the appellant, the assessments continued to be provisional as per the Assistant Commissioner's order.The Tribunal analyzed the submissions from both sides and focused on determining whether the assessment was provisional or final. The Tribunal noted that the Assistant Commissioner had ordered provisional assessment from a specific date due to ongoing inquiries regarding certain deductions. The order explicitly mentioned 'provisional assessment order recording.' The Tribunal emphasized that as long as the assessment remained provisional and unresolved, subsequent clearances by the manufacturer would also be considered provisional. The Tribunal referred to a previous case to support its decision, stating that the failure to mention provisional assessment on a specific form did not negate the continuation of provisional assessment. The Tribunal concluded that the assessment was indeed provisional during the relevant period, leading to the rejection of the appeal.