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Challenge against the impugned order on the ground of limitation. Analysis: The case involved a dispute regarding the recovery of duty on imported components under a customs notification. The appellants filed Bills of Entry for clearance of components imported from Japan and paid duty after availing exemption under a specific notification. The Department alleged that the items were not covered under the notification and issued a show-cause notice proposing to recover the alleged short payment with interest. The dispute was adjudicated by the Additional Collector, who confirmed the demand, leading to the appeal. The main challenge against the impugned order was based on the ground of limitation. The appellants argued that the show-cause notice did not contain specific allegations of collusion, wilful misstatement, or suppression of facts, which are prerequisites for invoking the extended period of limitation under the Customs Act. The appellants relied on Supreme Court decisions emphasizing the necessity of explicitly stating the grounds for invoking the extended period of limitation in the show-cause notice. After examining the submissions, the Tribunal found in favor of the appellants on the ground of limitation. It was noted that the show-cause notice lacked any specific allegations of collusion or misstatement against the appellants, as required by law. Citing Supreme Court rulings, the Tribunal emphasized that natural justice demands a clear statement of grounds for invoking the extended period of limitation. As such, the demand for duty was deemed time-barred, and the impugned order was set aside, allowing the appeal. The cross-objections were also disposed of accordingly. In conclusion, the Tribunal's decision highlighted the importance of adhering to procedural requirements, particularly in cases involving the invocation of extended periods of limitation for duty recovery. The judgment underscored the necessity of providing clear and specific grounds in show-cause notices to ensure fairness and uphold natural justice principles in customs proceedings.
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