Show cause notice requirement: duty demand could not be confirmed without statutory notice despite waiver request.

A duty demand under Section 11A could not be confirmed without issuance of a show cause notice, and the assessee's request to waive notice and personal hearing did not amount to a valid waiver of that statutory requirement. The prescribed procedure and principles of natural justice remained mandatory, and no estoppel could arise against compliance with the statute. Rule 233A was confined to oral notice in confiscation and penalty proceedings and did not dispense with notice for duty determination. The duty demand was therefore set aside and remitted for de novo adjudication after notice, while the confiscation component was sustained.

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Issues: Whether the duty demand could be sustained without issuance of a show cause notice under Section 11A despite the assessee's request to waive notice and personal hearing, and whether the adjudication order demanding duty was liable to be set aside with the matter remanded.

Analysis: The assessee had paid the duty under protest and expressly reserved the right of appeal. The request to waive departmental procedure did not amount to a valid waiver of the statutory notice required for confirmation of duty. Section 11A mandated a show cause notice before duty could be determined, whereas Rule 233A permitted oral notice only in relation to confiscation and penalty proceedings. The Court also held that there could be no estoppel against a statutory requirement and that compliance with the statutory procedure and principles of natural justice remained necessary before confirming the demand.

Conclusion: The duty demand was set aside for want of a show cause notice and the matter was remitted for de novo adjudication after issuance of notice. The confiscation was sustained.

Final Conclusion: The order was interfered with only to the extent of the duty demand, while the confiscation component remained intact and the dispute on duty was sent back for fresh determination in accordance with law.

Ratio Decidendi: A demand of duty under Section 11A cannot be confirmed without a show cause notice, and a purported waiver by the assessee does not dispense with the statutory requirement or create estoppel against it.

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