Natural justice bars value enhancement beyond the notice, so the valuation order was set aside and remanded.

An adjudication that exceeds the scope of notice and enhances the assessable value without putting valuation to the assessee violates natural justice. Here, notice was waived only on classification, yet the authority rejected the declared value and relied on contemporaneous import prices without notice or opportunity to respond, and the relied-upon bill of entry was not available on record when the order was passed. The enhancement was therefore unsustainable, the order was set aside, and the matter was remanded for fresh adjudication after due notice and hearing.

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Issues: Whether the enhancement of assessable value of the imported goods without prior notice to the assessee violated natural justice and warranted setting aside of the adjudication order and remand.

Analysis: The only matter put to the assessee before adjudication was classification of the imported goods, and the assessee had waived notice only on that issue. The adjudicating authority nevertheless proceeded to reject the declared value and enhance it on the basis of contemporaneous import prices, without issuing notice on valuation or calling for any response on that aspect. The record also indicated that the contemporaneous bill of entry relied upon for enhancement was not available before the adjudicating authority when the order was passed. The valuation decision was therefore reached behind the assessee's back and without a proper opportunity to meet the material used against it.

Conclusion: The enhancement of value was vitiated by breach of natural justice. The impugned order was set aside and the matter was remanded for fresh adjudication after due notice and opportunity of hearing.

Ratio Decidendi: An adjudication that travels beyond the notice issued to the assessee and determines an adverse issue without affording an opportunity to meet the material relied upon is unsustainable for breach of natural justice and must be remitted for fresh decision.

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