Statutory recovery procedure governs customs duty liability; setting aside an assessment does not create automatic enforceable demand.

Customs duty not levied or short levied could not be recovered merely because an assessment order was set aside; liability arose only through the statutory recovery procedure, including notice under the relevant provision. The Tribunal treated the customs recovery framework as analogous to the excise recovery scheme and held that invalidation of an assessment did not by itself create an automatic enforceable duty demand. The direction fastening customs duty on the goods was therefore set aside, while the department remained free to proceed in accordance with law if duty was otherwise leviable.

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Issues: Whether customs duty could be fastened merely by setting aside the assessment order, without recourse to the statutory recovery mechanism under the Customs Act.

Analysis: The statutory provisions governing recovery of customs duty were treated as analogous to the corresponding excise provisions. The liability to recover duty not levied or short levied was held to arise only in accordance with the procedure prescribed by law, including issuance of notice under the relevant recovery provision. Merely setting aside the assessment did not, by itself, create an automatic enforceable liability to duty.

Conclusion: The direction holding the goods liable to customs duty as applicable was set aside. The department was left at liberty to proceed in accordance with law if duty was otherwise leviable.

Ratio Decidendi: Customs duty not levied or short levied cannot be recovered without following the statutory notice and recovery procedure, and invalidation of an assessment does not by itself create automatic duty liability.

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