Speaking order and fair hearing are essential before rejecting shipping bill conversion claims and remanding the matter.

Rejection of conversion of shipping bills from DEPB to DEEC was held unsustainable because the adjudication was not supported by a speaking order and did not show proper application of mind to the exporter's documents. The exporter was also not afforded a proper opportunity of hearing on the material issues. The Tribunal noted that the factual question whether the export goods were manufactured from the relevant imported inputs required fresh examination on documentary evidence. The impugned order was therefore set aside and the matter remanded for de novo decision after giving a reasonable opportunity to the exporter and considering the evidence produced.

---

---

Issues: Whether the order rejecting conversion of shipping bills from DEPB to DEEC was sustainable, and whether the matter required remand for fresh consideration after affording the exporter an opportunity of hearing.

Analysis: The order impugned before the Tribunal was found to be only a note-sheet based decision without clear findings on the conditions of the Board's circular governing conversion of shipping bills. The order did not disclose proper application of mind to the exporter's documents or an opportunity having been given to explain the claim. As the rejection was not supported by a speaking order and the exporter had not been heard on the material issues, the adjudication was held to be unsustainable. The factual controversy regarding whether the export goods were manufactured from the relevant imported inputs was also considered fit for examination afresh by the adjudicating authority on documentary evidence.

Conclusion: The impugned order was set aside and the matter was remanded to the Commissioner for de novo decision after granting a reasonable opportunity of hearing and considering the evidence to be produced by the exporter.

Ratio Decidendi: An adjudication that rejects a claim without a speaking order and without affording a proper opportunity of hearing cannot be sustained and must be remanded for fresh decision on the basis of evidence.

---