Natural justice in adjudication requires evidence to be considered and properly verified before rejection.

The adjudication order was held to be vitiated by breach of natural justice. Although the affidavits produced by the appellants were found deficient because they lacked complete addresses and adequate transaction particulars, the Commissioner should not have rejected the sales and utilisation records merely by sending them to DRI for verification. The evidence ought to have been taken on record and verified through a proper process before any rejection. The record also did not contain proper findings on correlation between the disputed Bills of Entry and the corresponding utilisation certificates, so the order could not stand.

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Issues: Whether the adjudication order was vitiated for breach of natural justice in rejecting affidavits and sales details without proper verification, warranting remand for fresh adjudication.

Analysis: The Tribunal found that the affidavits relied on by the appellants were deficient because they did not furnish complete addresses or adequate particulars of purchase quantities, dates, or payment details, and therefore could not be effectively tested by summons or cross-examination. At the same time, the Tribunal held that the Commissioner ought not to have discarded the appellants' sales and utilisation records merely by directing them to furnish the material to DRI for verification. The adjudicating authority should have taken the evidence on record and caused it to be verified through an appropriate process before rejecting it. The Tribunal further noted that the imports covered by the disputed Bills of Entry required clear correlation with the corresponding utilisation certificates and that the record did not contain proper findings on that aspect.

Conclusion: The order was vitiated by violation of natural justice and could not stand.

Ratio Decidendi: Where a party produces evidence relevant to the dispute, the adjudicating authority must consider it on record and, if necessary, verify it through proper procedure before rejection; failure to do so amounts to breach of natural justice and justifies remand.

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