Supreme Court: Show Cause Notices Under Customs Act Section 28 Invalid Before Final Assessment; Violates Natural Justice Principles.

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....Service of show cause notice (SCN) u/s 28 of Customs Act 1962 for undervaluation of imported reprocessed LDPE/HDPE granules and HDPE agglomaterial from overseas suppliers before finalization of assessment held legally defective. Supreme Court in Canon India case held Section 28 power to recover duty not paid/short paid operative only after final assessment. High Courts of Calcutta in AS Syndicate case and Bombay in Mahesh India case held SCN u/s 28 before final assessment bad in law. Demand, penalties, and confiscation quashed as demand itself failed. Principles of natural justice violated by issuing legally defective notice depriving opportunity to examine evidence.....