Duty-free benefit denial set aside for lack of notice and hearing, with remand for fresh adjudication

Denial of duty-free benefit under Customs Notification No. 98/2009-Cus could not be sustained where no show cause notice was issued, no hearing was granted, and the denial order gave no detailed reasons. The Tribunal held that the dispute could not be decided on merits at that stage and that the proper course was remand for fresh adjudication. It therefore set aside the denial, directed the adjudicating authority to issue notice, hear the assessee, and pass a speaking order, and fixed a two-month time limit because the consignment was live.

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Issues: Whether denial of duty free benefit under Customs Notification No. 98/2009-Cus could be sustained when no show cause notice was issued and no opportunity of hearing was granted, and whether the matter required remand for fresh adjudication.

Analysis: The denial order contained no detailed reasons. No show cause notice had been issued and the assessee had not been heard. In these circumstances, the Tribunal held that the dispute could not be decided on merits at that stage. The proper course was to send the matter back to the adjudicating authority to issue notice, hear the assessee, and pass a speaking order. A time limit of two months was fixed in view of the live consignment.

Conclusion: The denial of benefit was set aside for fresh adjudication and the matter was remanded to the adjudicating authority after granting reasonable opportunity of hearing.

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