Finality of customs duty assessment bars belated reopening, but pending exemption claim can justify conditional stay of recovery.

An unchallenged customs duty assessment was treated as having attained finality, so the levy could not be reopened at a belated stage after the petitioner had accepted the original demand. At the same time, because the exemption claim was still pending before the authorities and no final decision had been made, recovery steps were directed to remain in abeyance subject to a 50% deposit and further consideration of refund if exemption was ultimately allowed. The result was that the original levy was not disturbed, but conditional protection against recovery was granted until disposal of the exemption request.

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Issues: (i) Whether the petitioner could reopen the duty levy under Section 28(2) of the Customs Act after having not challenged the original demand; (ii) Whether recovery proceedings could be stayed pending disposal of the petitioner's exemption claim.

Issue (i): The petitioner had accepted the duty levy and did not challenge the original order within time. In such circumstances, the levy could not be reopened at the belated stage, particularly after a substantial lapse of time.

Conclusion: The challenge to the duty levy was not entertained and the issue was decided against the petitioner.

Issue (ii): Although the levy itself was not reopened, the exemption claim remained pending and no final decision had been taken by the authorities. In that situation, recovery steps were directed to be kept in abeyance, subject to a partial deposit and timely disposal of the exemption claim.

Conclusion: Recovery proceedings were stayed pending decision on the exemption claim, subject to deposit of 50% of the duty and consideration of refund if exemption was found admissible.

Final Conclusion: The writ petition was disposed of by refusing to disturb the original levy, but granting conditional protection against recovery until the exemption request was decided.

Ratio Decidendi: An unchallenged duty assessment attains finality, but recovery may be conditionally stayed where a bona fide exemption claim remains pending for administrative determination.

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