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The intention from the start was to replace HUMAN JABBA with a CREATURE JABBA (stop motion animation - like Ray Harryhausen style), in 1976 at the time of filming they hadnt fully decided what Jabba would actually look like, character designs were created, but I guess GL wasn't happy with what was created & the scene was eventually edited from the movie. It wasn't until production of Return Of The Jedi had started that the finalised look of Jabba was achieved.
it is true...
Star Wars to Jedi : The Making of Saga
check it out