1991 (3) TMI 292 - AT - Central Excise

Summary

Issues:
1. Appeal against provisional assessment order
2. Compliance with procedural requirements for provisional assessment
3. Finalization of classification pending

Analysis:
The appeal before the Appellate Tribunal CEGAT, Bombay challenged the Order-in-Appeal rejecting the appellants' appeal against the provisional assessment made by the Assistant Collector. The Assistant Collector provisionally assessed the classification list, intimating the assessee of the same. The appellants contended that the Assistant Collector did not follow the Board's directions for provisional assessment, emphasizing the necessity for grounds for such assessment. On the other hand, the Respondent argued that the provisional assessment was justified due to doubts regarding the notification's applicability.

Rule 9B of the Central Excise Rules allows provisional assessment when final assessment delays due to necessary investigations. The rule does not mandate a notice before provisional assessment but requires the assessing authority to justify the need for it. The Tribunal noted the absence of clear grounds for the provisional assessment order. Despite provisional assessments being interim, the Tribunal observed the Assistant Collector's failure to comply with the Board's directions and the pending finalization of classification. The Assistant Collector was directed to expedite the finalization within two months.

The Editor's comments highlighted Section 35(1) of the Central Excises and Salt Act, allowing appeals against any decision or order by a Central Excise Officer without distinguishing between interim or final orders. Referring to a Gujarat High Court decision, it was emphasized that aggrieved parties can appeal if Excise authorities refuse provisional assessment under Rule 9B. The comments suggested a reconsideration of the West Regional Bench's finding that no appeal lies against provisional assessment orders, especially when the assessing authority is required to provide reasons, granting the right of appeal to challenge the validity of such reasons.