Premature interest recovery notices under Customs law are invalid without prior quantification of the amount due.

Recovery notices for interest under Section 142(1)(C)(ii) of the Customs Act were held premature where no prior order or communication had quantified the interest due. The provision presupposes an amount already determined as recoverable and due to the Government; in the absence of such prior quantification, recovery could not validly be initiated. The notices were therefore not maintainable, and the assessee succeeded.

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Issues: Whether recovery notices for interest could validly be issued under Section 142(1)(C)(ii) of the Customs Act, 1962 without prior communication of any order quantifying the interest due.

Analysis: The notices were issued for recovery of interest relatable to delayed reversal of Cenvat credit on inputs cleared as such. The liability sought to be recovered was a sum alleged to be due to the Government, but no prior notice or order quantifying the interest had been communicated before issuance of the recovery notices. Recovery under Section 142(1)(C)(ii) presupposes that the amount recoverable has already been determined and is due. In the absence of any prior quantification, the notices were held to be premature.

Conclusion: The recovery notices were not maintainable and the assessee succeeded.

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