Natural justice required fresh reconsideration of customs-duty exemption withdrawal after supply of the inspection report and hearing

Withdrawal of the customs-duty exemption certificate for import of medical instruments was set aside because the appellants were not given a proper opportunity to meet the case against them. The impugned orders were treated as procedurally unfair, particularly as the inspection report had not been supplied before decision. The matter was remitted for fresh consideration by the Director General Health Services after furnishing the report and granting a hearing, so that a lawful decision could be taken in accordance with natural justice.

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Issues: Whether the withdrawal or cancellation of the exemption certificate granting exemption from customs duty on import of medical instruments was vitiated for violation of natural justice, and whether the matter required remand for fresh consideration.

Analysis: The order under challenge was viewed as having been made without affording the appellants due opportunity to present their case. In the course of the hearing, the Additional Solicitor General agreed that the impugned order of the High Court as well as the order of the Director General Health Services should be set aside and that the matter should be reconsidered afresh after supplying the inspection report and giving the appellants an opportunity of hearing. The relief therefore rested on procedural fairness and a fresh decision in accordance with law.

Conclusion: The cancellation/withdrawal was set aside and the matter was remitted to the Director General Health Services for fresh decision after giving the appellants due opportunity of hearing.

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