Natural justice in customs testing bars differential duty demand when retest is denied and no duplicate sample exists.

Differential customs duty could not be sustained where the importer disputed the departmental test report and was denied retest because no duplicate sample had been retained. Reliance on that report without an effective opportunity to challenge the test result breached natural justice and fair hearing requirements, so the impugned order was liable to be set aside.

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Issues: Whether the demand of differential customs duty could be sustained when the importer's request for retest of the sample was refused and no duplicate sample had been retained.

Analysis: The goods had been assessed at a concessional rate under Notification No. 20/99-Cus. and the demand was founded on the departmental test report. The importer disputed the test result and sought retest, but no duplicate sample was available and no retest was permitted. In such circumstances, reliance on the departmental test result without giving an effective opportunity to challenge it amounted to denial of a fair hearing and violation of the principles of natural justice.

Conclusion: The demand could not be sustained and the impugned order was liable to be set aside.

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