Assessment orders set aside for lack of fair hearing; goods provisionally released with bank guarantee.

The High Court held that the assessment orders were passed in violation of natural justice principles as the petitioner was not given a fair opportunity to be heard. The Court set aside the orders, directing the officer to draw samples for testing and provisionally release the goods with a bank guarantee. It emphasized the importance of affording a fair hearing and conducting necessary examinations before assessment orders. The Court highlighted that the availability of an appeal remedy does not prevent seeking writ relief for procedural violations.

---

---

Issues:
Classification of imported goods under Customs Tariff Head, Provisional assessment, Opportunity of hearing, Violation of principles of natural justice.

Classification of Imported Goods under Customs Tariff Head:
The petitioner imported Investment Powder and Gypsum Powder from Turkey, mistakenly classifying them under incorrect Customs Tariff Head initially. The petitioner later corrected the classification and claimed concessional rates of duty under specific notifications. The department raised queries regarding the classification, leading to disputes over the correct classification of the goods. The Assessing Authority passed orders classifying the goods differently, which were challenged by the petitioner through a writ petition.

Provisional Assessment:
The petitioner requested provisional assessment pending examination and testing of the goods, offering to execute a bond for the differential duty. The Assessing Authority, however, passed orders without providing an opportunity of hearing to the petitioner or sending the goods for examination/testing as requested. The petitioner contended that the goods should have been examined, especially when requested, before passing the assessment order.

Opportunity of Hearing:
The petitioner argued that the Assessing Authority should have provided an opportunity of hearing before passing the assessment orders, as reassessment and classification under a different tariff head have civil consequences. The petitioner cited legal precedents emphasizing the importance of affording a reasonable opportunity of being heard, especially when administrative decisions involve significant consequences.

Violation of Principles of Natural Justice:
The High Court held that the impugned assessment orders were passed in violation of the principles of natural justice as the petitioner was not given a fair opportunity of being heard. The Court set aside the assessment order, directing the proper officer to draw samples for testing and provisionally release the goods subject to a bank guarantee. The Court emphasized that the existence of an alternative remedy of appeal does not bar invoking writ jurisdiction, especially in cases involving violations of natural justice.

In conclusion, the High Court quashed the impugned assessment order, highlighting the importance of providing a fair opportunity of hearing and conducting necessary examinations before passing assessment orders. The Court directed provisional release of goods pending testing and emphasized that the existence of an appeal remedy does not preclude seeking writ relief in cases of procedural violations.

---