Pre-judged customs proceedings violate natural justice when the authority denies a genuine hearing on illicit importation.

A show cause notice, confiscation order and penalty order were quashed where the customs authority had already pre-judged illicit importation of gold bars and treated confiscation as a foregone conclusion. The HC held that a quasi-judicial authority must maintain an open mind and afford a real opportunity of hearing; when the central issue is decided in advance, the hearing becomes an empty formality and breaches natural justice. The coercive customs action was set aside, with liberty reserved to proceed afresh in accordance with law if not otherwise barred.

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Issues: Whether the show cause notice, confiscation order, and penalty order were liable to be quashed for breach of natural justice on the ground that the authority had already pre-judged the issue of illicit importation of gold.

Analysis: The notice and its accompanying outline did not leave the enquiry officer with an open field for adjudication. They proceeded on the footing that the gold bars had already been illicitly imported and were therefore liable to confiscation. A quasi-judicial authority must approach the matter with an open mind and give a real opportunity of hearing. Where the authority has already made up its mind on the central question, the hearing becomes an idle formality and the proceeding is not in compliance with natural justice.

Conclusion: The show cause notice, confiscation order, and penalty order were unsustainable and were quashed in favour of the petitioner.

Final Conclusion: The coercive customs action was set aside, while liberty was reserved to proceed afresh in accordance with law if not otherwise barred.

Ratio Decidendi: A quasi-judicial proceeding is invalid where the deciding authority has pre-judged the issue and does not afford a genuine hearing with an open mind, as this violates the principles of natural justice.

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