Natural justice in customs adjudication requires personal hearing before duty liability is fixed; order set aside.

An adjudicatory duty order under the customs regime was unsustainable where liability was determined without granting the affected importer a personal hearing and without considering the relevant documentary material. The court held that such a procedure violated principles of natural justice and fair hearing requirements. The order was therefore set aside and the matter required reconsideration afresh after affording personal hearing.

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Issues: Whether the duty order was liable to be set aside for violation of principles of natural justice inasmuch as no personal hearing was granted before passing the order in original.

Analysis: The petitioner was proceeded against in relation to import of defective goods for repair and re-export under the customs regime. The record, including the counter affidavit, showed that no personal hearing was afforded before the duty order was passed. Where an adjudicatory authority determines liability without hearing the affected party and without considering the relevant documentary material, the order cannot be sustained as it offends the requirement of fair procedure.

Conclusion: The impugned duty order was liable to be set aside for breach of principles of natural justice and the matter had to be reconsidered afresh after granting personal hearing.

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