Customs duty exemption withdrawal quashed for ignoring replies, denying hearing, and failing to verify compliance.

Withdrawal of customs duty exemption certificates was held unsustainable where the authorities ignored the petitioners' replies and supporting material showing compliance with the exemption conditions. The impugned orders proceeded as if no response had been filed, failed to consider the material placed on record, and were passed without affording a personal hearing. The record also showed a failure to verify the information furnished before concluding that the exemption conditions were not satisfied. On those facts, the withdrawal orders and the customs show cause notice were quashed.

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Issues: Whether the withdrawal of the customs duty exemption certificates and the issuance of the customs show cause notice were sustainable in law.

Analysis: The petitioners had furnished replies and supporting material showing compliance with the conditions attached to the exemption. The impugned orders proceeded on the footing that no reply had been filed and did not deal with the material placed by the petitioners. The petitioners were also not afforded a personal hearing. The record disclosed non-consideration of the replies and a failure to verify the information furnished before concluding that the conditions for retaining the exemption were not satisfied.

Conclusion: The withdrawal orders and the customs show cause notice were unsustainable and liable to be quashed.

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