Provisional assessment did not cover the disputed period, so duty demand on ABS waste failed without a show cause notice.

Duty demand on ABS waste for September 1995 to March 1996 could not be sustained because the provisional assessment order dated 10-4-1996 did not cover that period. The assessments for the disputed period were therefore not provisional, and the Department was required to issue a show cause notice before confirming any duty liability on the waste. In the absence of such notice, the demand was held bad in law and set aside. A separate notice concerning reprocessed granules was left open for action in accordance with law.

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Issues: Whether the duty demand on ABS waste for the period September 1995 to March 1996 could be sustained on the basis of a provisional assessment order dated 10-4-1996, and whether the absence of a show cause notice proposing recovery of duty on ABS waste rendered the demand unsustainable.

Analysis: The provisional assessment order was held not to cover the period in dispute. The assessments for September 1995 to March 1996 could not be treated as provisional, and the Department was therefore required to issue a show cause notice before confirming the demand on ABS waste. In the absence of any such notice, the demand could not be upheld. The related challenge to the application for rectification was thus accepted, while the unadjudicated notice concerning reprocessed granules was left open for action in accordance with law.

Conclusion: The demand on ABS waste was held to be bad in law and was set aside. The assessee succeeded, and the Revenue was left free to proceed on the separate notice in accordance with law.

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