Finalization of Provisional assessment - Avoid unnecessary work for extension
A netizen sent us this mail -
We opted for provisional assessment of our excisable goods in the month of April, 2010 as the correct costing would be available only after the Balance sheet is prepared. The Assistant Commissioner was satisfied with our reasoning and accordingly allowed us, by an order, to clear the goods on payment of duty on provisional basis. Since the said Balance sheet would be prepared and completed only after the end of the financial year, invariably the jurisdictional authority would not be in a position to finalize the provisional assessment within a period of six months from the date of communication of the order as mentioned in sub-rule (3) to rule 7 of the CER, 2002 and would necessitate seeking an extension/further extension from the Commissioner of Central Excise/Chief Commissioner of Central Excise.
We feel that this scriptory work can be avoided if the wordings used in rule 7(3) of CER, 2002 are amended by making a reference to the end period for which provisional assessment has been ordered rather than employing the words "but within a period not exceeding six months from the date of the communication of the order issued under sub-rule (1): "
DDT understands that not many Assistant Commissioners give any order for Provisional Assessments and even if they do give, they NEVER seek any extension either from the Commissioner or the Chief Commissioner. It is understood that Provisional Assessments are pending for more than 25 years in several cases.
Once Provisional Assessments are ordered, they are never finalised, notwithstanding what the Board or the Rules say.