Provisional assessment under Rule 7 of Central Excise, Rules, 2002

Sanjay Kumar

Provisional assessment. RULE 7     

(1) Where the assessee is unable to determine the value of excisable goods or the rate of duty applicable thereto, he may request the AC/DC of Central Excise in writing giving reasons for payment of duty on provisional basis. AC/DC may order allowing payment of duty on provisional basis at such rate or on such value as may be specified by him.

(2) The payment of duty on provisional basis may be allowed, if the assessee executes a bond in the form prescribed by notification by the Board with such surety or security in such amount as the AC/DC deem fit, binding the assessee for payment of difference amount as follows:-

Bond Value = Amount Finally Assessed – Amount of duty provisionally Assessed.

(3) The AC/DC shall pass order for final assessment within a period not exceeding six months  from  the  date  of  the  communication  of  the  order issued under                       sub-rule (1):(3).

Provided that the period specified in this sub-rule may, on sufficient cause be extended by the CCE for a further period not exceeding six months and by the Chief CCE for such further period as he may deem fit.

(A) Where the amount of final Assessment > Amount of Provisional Assessment :

The assessee shall be liable to pay interest on such short duty payable at the rate specified by the Central Government by notification issued under section 11AA or section 11AB of the Act from the first day of the month succeeding the month for which such amount is determined, till the date of payment thereof.

         (B) Where the amount of final Assessment < Amount of Provisional Assessment :

The assessee is entitled to a refund on such excess duty paid at the rate specified by the Central Government by notification issued under section 11BB of the Act from the first day of the month succeeding the month for which such refund is determined, till the date of refund.