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<h1>Steps for Prosecution Under Indirect Tax Laws: Detection, Investigation, Show Cause Notice, Adjudication, Prosecution Sanction, Compounding.</h1> The procedure for launching prosecution under Indirect Tax Laws involves detecting duty evasion, completing investigations, and issuing a Show Cause Notice (SCN). Post-adjudication, a proposal is sent for prosecution sanction to the Principal Chief Commissioner. If approved, a letter offering compounding is issued to the accused. If declined, prosecution is initiated. For compounding offenses, an application is filed with the jurisdictional authority, and a factual report is obtained. A personal hearing is granted before any rejection, and an order is passed within a month of the hearing.