Limitation and show cause notice requirements: later departmental communication counted as the appealable order, and demands failed without prior notice.

A later departmental communication that substantively addressed the assessee's objections was treated as the appealable order for limitation purposes, so limitation ran from that communication and the appeal was not time-barred. Demands raised without the legally required show cause notice were held unsustainable, and the duty demands were set aside. The lower authority's dismissal was therefore overturned, with the limitation objection rejected and the demands annulled without remand.

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Issues: (i) Whether the appeal was barred by limitation by treating the earlier departmental letter as the relevant order. (ii) Whether the duty demands could be sustained in the absence of a show cause notice preceding the demand.

Issue (i): Whether the appeal was barred by limitation by treating the earlier departmental letter as the relevant order.

Analysis: The later communication dealt with the assessees' objections and, on the facts, had the character of an appealable order. Limitation was therefore to be computed from that communication and not from the earlier letter raising the demand.

Conclusion: The appeal was not time-barred and rejection on limitation was unsustainable, in favour of the assessee.

Issue (ii): Whether the duty demands could be sustained in the absence of a show cause notice preceding the demand.

Analysis: No show cause notice as required by law was served before raising the demands. In the absence of such notice, the demands could not be upheld.

Conclusion: The duty demands were set aside, in favour of the assessee.

Final Conclusion: The dismissal of the appeal by the lower authority was set aside, the limitation objection was rejected, and the duty demands were annulled without remand.

Ratio Decidendi: Where a later departmental communication substantively answers the assessee's objections, it may be treated as the appealable order for computing limitation, and a demand raised without the legally required show cause notice is not sustainable.

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