Natural justice defect in drawback recovery proceedings led to setting aside of ex parte orders and remand for fresh hearing.

Demand of drawback recovery and penalty could not be sustained where the record did not prove due service of the show cause notice or the personal hearing intimation. The adjudication was passed ex parte, denying the exporter an opportunity to produce documents and establish timely realisation of export proceeds. That denial of notice and hearing violated natural justice and went to the root of the proceedings. The adverse orders were therefore set aside, and the matter was remanded to the original authority for fresh notice, hearing, and decision on merits in accordance with law.

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Issues: Whether the demand of drawback amount and penalty could be sustained when there was no proof of service of the show cause notice or personal hearing intimation, and whether the matter required remand for fresh consideration.

Analysis: The record did not establish that the show cause notice had been duly dispatched or served on the petitioner, and there was also no reliable material showing service of the intimation for personal hearing. The impugned orders had been passed ex parte, thereby depriving the petitioner of an opportunity to place documents and establish that the export proceeds had been realised within the stipulated time. Such a defect went to the root of the adjudication and amounted to a violation of natural justice.

Conclusion: The orders confirming recovery of drawback and penalty could not be sustained and were set aside. The matter was remanded to the original authority for fresh notice, hearing, and decision on merits in accordance with law.

Final Conclusion: The petitioner obtained relief by way of setting aside of the adverse orders and remand for de novo adjudication after due notice and hearing.

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