Central Excise - Strict observance of provisions relating to provisional assessment - Regarding - Central Excise - 26/89

Central Excise - Strict observance of provisions relating to provisional assessment - Regarding Circular No. 26/89 Dated 24-4-1989 [From F. No. 202/8/89-CX.6] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Central Excise - Strict observance of provisions relating to provisional assessment - Regarding. Instances have come to the notice of the Board where non-observance of legal requirements prescribed under Rule 9B of Central Excise Rules, 1944 relating to provisional assessments have resulted in loss of Government revenue. 2. Provisional assessment can be ordered only under the circumstances mentioned in rules 9B, 173B(2A) and 173C(6) of the Central Excise Rules, 1944. There must be a specific order from the Assistant collector directing provisional assessment in a particular case clearly stating - 1. the grounds on which the provisional assessment has been ordered. 2. rate and value at which duty is to be provisionally paid. 3. the amount of differential duty for which bond is to be executed. 4. the amount of security or surety as may be fixed by Asstt. collector keeping in view the instructions issued by Board from time to time. 3. If any of these conditions are not observed, the assessments will not be considered as provisional, notwithstanding the fact that the words 'provisional assessment', 'provisionally approved' etc. are endorsed on the relevant documents. 4. In this context, your attention is invited to the following decisions of the Tribunal/Court :- (i) Assistant Collector of Central Excise, Calcutta v. National Tobacco Co. - 1978 E.L.T. (J 416); (ii) International Computers Indian Manufacturers Ltd. and another v. Union of India Others 1981 E.L.T. 632 (Del.). (iii) Castrol Limited Calcutta v. Collector of Central Excise, Calcutta -1985 (20) E.L.T. 102 (Tribunal). 5. The field formations may be suitably advised for strict compliance.