Customs recovery and evidence admissibility under challenge as Members differ on limitation and assessment requirements.

CESTAT Chandigarh considered whether show cause notices dated 07.10.2016 and the later adjudication were rendered ineffective by the amended limitation rule, whether recovery could proceed without first challenging the assessment under the customs assessment provisions, and whether relied-upon documents were admissible absent the prescribed evidentiary compliance. The Members differed on the applicability of the amended limitation provision and on the remaining issues, so the matter was referred to a third Member for decision.

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Issues: (i) Whether the show cause notices issued on 07.10.2016 and adjudicated on 28.05.2019 stood vacated under Explanation 4 to Section 28 of the Customs Act, 1962; (ii) whether recovery under Section 28 could proceed without challenging the assessment under Section 17 of the Customs Act, 1962; (iii) whether the documents relied upon were admissible in the absence of compliance with Section 138C of the Customs Act, 1962.

Outcome: The Members differed on the applicability of the amended limitation provision and on the other issues, and the matter was referred for decision by a third Member.

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