Excise

Valuation

— Two assessments for the same period — Impermissibility — Assessment period July 1973 to February 1983 — Goods cleared on the basis of provisional assessment — Assistant CCE issuing notice to assessee to show cause against proposed disallowance of certain deductions for the said period — CCE also issuing a notice to assessee in respect of part of the same period (September 1981 to February 1983), making certain allegations and requiring the assessee to show cause against proposed: (i) raising of demand of the duty short-paid, by invoking R. 9(2), Central Excise Rules, 1944 read with proviso to S. 11-A(1), Central Excise Act, 1944, and (ii) levy of penalties under various rules — CCE later directing the Assistant CCE to make the final assessment expeditiously with liberty to use the material contained in the show-cause notice issued by CCE as independent material to support the final assessment — CCE adding that after completion of such assessment by Asstt. CCE, CCE would take up his own show-cause notice for adjudication — In such circumstances, held, Asstt. CCE got exclusive jurisdiction to finally adjudicate and determine the assessable value of the goods cleared as well as the consequent duty liability for the entire period — Therefore, when the assessable value was determined and consequent demand was raised by Asstt. CCE by finalising the assessments for the entire period (July 1973 to Feb. 1983) and Revenue did not challenge the order of Asstt. CCE under S. 135-E(2) nor did it issue a short-levy notice under S. 11-A within the normal limitation period, held, the order of Asstt. CCE attained finality against the Revenue and there could be no second assessment — Hence, the penalty imposed thereafter by CCE in the proceedings pursuant to the notice issued by him for the part of the period (September 1981 to February 1983), held, bad — More so, when the amount due for the entire period in question had been settled under Kar Vivad Samadhan Scheme, 1998, (2006) 7 SCC 642-A

Excise

Penalty

— Penalty under R. 9(2), Central Excise Rules, 1944 — Condition precedent for levy of — Assessment period September 1981 to February 1983 — Where goods were cleared not clandestinely but under provisional assessment, held, penalty under R. 9(2) not leviable — More so, when the matter had already been settled under Kar Vivad Samadhan Scheme, 1998, (2006) 7 SCC 642-B