Natural justice requires a hearing before rejecting shipping bill conversion affecting duty drawback entitlement and remand followed.

Rejection of a request to convert duty-free shipping bills into duty drawback shipping bills without giving the claimant an opportunity to explain the case or produce supporting evidence was treated as contrary to natural justice. Because the decision affected substantive entitlement to duty drawback, the absence of a hearing was material and could not be sustained. The impugned order was therefore set aside and the matter remanded for a fresh decision after affording an opportunity of hearing.

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Issues: Whether rejection of the request for conversion of duty-free shipping bills into duty drawback shipping bills without affording an opportunity of hearing violated the principles of natural justice and warranted remand.

Analysis: The request for conversion was rejected without giving the appellant an opportunity to explain the case or produce evidence in support of entitlement to duty drawback. Such non-grant of hearing in a matter affecting substantive rights was found to be inconsistent with the principles of natural justice.

Conclusion: The impugned order was set aside and the matter was remanded to the Commissioner for fresh decision after granting the appellant an opportunity to be heard.

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