Natural justice bars rejection of a fiscal exemption claim without notice or hearing; matter remitted for reconsideration.

An adverse rejection of a fiscal exemption claim cannot be sustained when passed without prior notice or an opportunity of hearing, unless the governing statute or notification expressly excludes such procedure. The High Court held that the claimant's request under Notification No. 01/2010-CE was declined without a show cause notice or hearing, and the record disclosed no provision dispensing with natural justice. The order was therefore set aside and the matter remitted to the competent authority for fresh consideration after affording due opportunity of hearing.

---

---

Issues: Whether the impugned order granting a benefit but without affording notice or opportunity of hearing to the petitioner was liable to be set aside and the matter remitted for fresh decision.

Analysis: The petition was examined only on the question of violation of natural justice. The petitioner's claim for benefit under Notification No. 01/2010-CE was rejected without issuing a show cause notice or otherwise giving it an opportunity to explain why the claim should not be declined. The record did not disclose any provision in the Act or the notification dispensing with hearing in such proceedings. Where the authority proposes to reject a claim that has adverse civil consequences, notice and an opportunity to respond are required.

Conclusion: The order dated 29.05.2018 was set aside and the matter was remitted to the competent authority for fresh consideration after affording due opportunity of hearing to the petitioner.

Ratio Decidendi: An adverse order affecting a claim to fiscal exemption cannot be sustained when passed without prior notice or hearing, unless the governing statute or notification expressly excludes such opportunity.

---