Customs investigation communication cannot replace adjudication; liability must be by show cause notice and final proceedings

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Full Text of the Document

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....A High Court held that an investigation-stage communication issued after the petitioner's representative indicated willingness to pay differential duty was not a statutory demand fastening customs liability, so the communication was quashed and the department was required to commence regular adjudication by issuing a show cause notice. The Court also held that payment made during investigation, whether under protest or otherwise, does not bar adjudication and may be appropriated only against the final liability determined in that process. Refund of the amount deposited during investigation was declined, and no further demand or recovery was permitted until adjudication was completed.....