Collateral challenge to an unappealed valuation order was barred; technical defects in departmental appeal signatures were treated as debatable.

An unchallenged valuation order could not ordinarily be reopened collaterally at the stage of demand under Section 11A, so the assessee's attempt to dispute the valuation in resisting demand was treated as prima facie barred. The objection that the departmental appeal was defective because the appeal form and grounds were signed by different officers was regarded as debatable and, at most, technical in nature. On that basis, the Tribunal directed a pre-deposit of Rs. 1 lakh and waived deposit of the balance duty, with recovery stayed on compliance.

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Issues: Whether the assessee could, at the stage of demand under Section 11A, question the valuation order earlier passed and not appealed against; and whether the departmental appeal was defective because the appeal form and accompanying grounds were signed by different officers.

Analysis: The earlier valuation order had not been challenged, and the demand was founded on that unchallenged determination. The Tribunal noted that the challenge to the demand by questioning the valuation was prima facie barred in view of the principle that an unappealed order cannot ordinarily be reopened collaterally. The objection regarding signatures on the departmental appeal was also treated as debatable, with some merit in the revenue's explanation that the defect, if any, was technical.

Outcome: A pre-deposit of Rs. 1 lakh was directed, and deposit of the balance duty was waived with recovery stayed on such deposit.

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