Natural justice requires a pre-decisional hearing before provisional assessment is changed to impose additional duty liability.

Where provisional assessment is proposed on a changed basis that imposes additional duty liability, the assessee must be afforded a reasonable opportunity of being heard because the order has civil consequences and natural justice applies. The absence of a statutory requirement for a show cause notice does not dispense with that obligation, and a personal hearing may satisfy the requirement. The requirement of a pre-decisional hearing before imposing the revised provisional duty was therefore affirmed.

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Issues: Whether, before passing an order for provisional assessment on a changed basis resulting in additional duty liability, the assessee was entitled to a reasonable opportunity of being heard even in the absence of a show cause notice.

Analysis: No provision in the Central excise law was found to require a show cause notice before provisional assessment. However, where the basis of assessment is altered so as to cast an additional burden on the assessee, the order has civil consequences and the principles of natural justice require that the assessee be heard. Compliance with natural justice does not invariably depend on issuance of a show cause notice, and an opportunity of personal hearing may suffice.

Conclusion: The assessee was entitled to a reasonable opportunity of being heard before provisional assessment was made, and the direction requiring such hearing was upheld.

Final Conclusion: The Revenue's challenge to the remand direction failed, and the requirement of a pre-decisional hearing before imposition of provisional duty was affirmed.

Ratio Decidendi: Where an assessment order is proposed on a changed basis that imposes additional liability, the affected party must be afforded a reasonable opportunity of hearing in observance of natural justice, even if a show cause notice is not mandatory.

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