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Issues: (i) Whether an endorsement on RT 12 returns directing payment of alleged short levy could be treated as a valid notice under Section 11A or as a means to save limitation. (ii) Whether a duty demand arising from a disputed assessment could be enforced without issuance of a show cause notice and proper adjudication under the statutory procedure.
Issue (i): Whether an endorsement on RT 12 returns directing payment of alleged short levy could be treated as a valid notice under Section 11A or as a means to save limitation.
Analysis: The endorsement was made without issuance of a show cause notice and without the adjudicatory process contemplated by the statute. A short endorsement on RT 12 returns, by itself, could not be equated with a notice for recovery of short levy, nor could it dispense with the limitation and procedure prescribed for such recovery.
Conclusion: It could not be treated as a valid notice under Section 11A or as a substitute for the statutory recovery procedure.
Issue (ii): Whether a duty demand arising from a disputed assessment could be enforced without issuance of a show cause notice and proper adjudication under the statutory procedure.
Analysis: The demand did not arise from a mere arithmetical correction but involved a disputed question requiring adjudication. Since the assessment was contested and no proper show cause notice was issued, Rule 173-I could not validate the demand. The statutory course was to proceed under Section 11A, and in the absence of such compliance the demand could not be enforced.
Conclusion: The demand was not enforceable and the appeal succeeded.
Final Conclusion: Recovery of the alleged short levy had to follow the prescribed statutory adjudication procedure, and the impugned demand could not be sustained on the basis of the RT 12 endorsement alone.
Ratio Decidendi: A disputed duty demand cannot be enforced through a mere RT 12 endorsement; where the levy is contested, recovery must follow the statutory show cause and adjudication procedure under Section 11A.
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