2004 (2) TMI 462 - AT - Central Excise

Summary

Issues:
The requirement of bank guarantee and B-13 bond for provisional assessment.

Analysis:
The appellant challenged the order directing them to provide a bank guarantee and execute a B-13 bond for provisional assessment. The Revenue issued show cause notices demanding duty, which were confirmed by the original authority but overturned in favor of the appellants by the Commissioner (Appeals). The Revenue appealed to the Tribunal, with the appeals pending. The appellant argued that since demand notices were already issued, provisional assessment was unnecessary. Citing a precedent, the appellant contended that provisional assessment aims to safeguard revenue during further inquiries, which was not needed when the maximum duty rate was already directed to be paid. The Tribunal agreed that since demand notices were adjudicated, there was no basis for provisional assessment. Consequently, the impugned order was set aside, and the appeal was allowed.