Natural justice and reasonable time limit retrospective withdrawal of drawback benefit where hearing was denied and delay was inordinate.

Retrospective withdrawal of drawback benefit could not be sustained where the affected party was not given an effective hearing and the issue remained undecided for an unduly long period. The Court treated the withdrawal controversy as distinct from the separate brand rate fixation proceedings and held that adjudicatory power must be exercised within a reasonable time with proper notice and hearing. The clubbing of matters and decision-making without observance of natural justice vitiated the impugned order. In view of the delay and the expiry of the scheme, remand was declined, and the order was quashed insofar as it ed the retrospective withdrawal issue.

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Issues: Whether the impugned order could sustain the adjudication of the issue relating to retrospective withdrawal of the drawback benefit without a proper hearing and after inordinate delay.

Analysis: The controversy concerning retrospective withdrawal of the drawback granted under the earlier brand rate letter was distinct from the separate proceedings relating to rejection of applications for fixation of brand rate. The record showed that the petitioners were not afforded an effective hearing on the retrospective withdrawal issue, and the matter was left undecided for an unduly long period. The Court held that adjudicatory powers must be exercised within a reasonable time and that the procedure adopted in clubbing and deciding the matter without proper notice and hearing violated the principles of natural justice. Considering the elapsed time and the end of the scheme, remand was declined.

Conclusion: The impugned order was quashed and set aside insofar as it related to the issue of retrospective withdrawal of drawback, and that part of the petition was allowed.

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