Natural justice in customs confiscation: lack of proof of hearing notice led to quashing and conditional release of goods.

Confiscation of imported goods could not be sustained where the customs authority failed to prove service of notice fixing the hearing or otherwise give an effective opportunity of personal hearing. The absence of notice-compliant procedure meant the confiscation order was passed in breach of natural justice and was quashed, with the matter remitted for further action according to law. Conditional release of the remaining goods was also directed, on terms including payment of duty, partial deposit of the differential duty, furnishing of a bank guarantee, and security.

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Issues: Whether the confiscation order passed by the customs authority was liable to be quashed for breach of natural justice, and whether release of the imported goods could be directed subject to conditions.

Analysis: The petitioner was not shown to have been served with notice of the hearing fixed by the customs authority, and no material was produced to establish due service of the communication fixing the date of hearing. In the absence of proof of service, the petitioner could not be treated as having been given an effective opportunity of personal hearing. The confiscation order was therefore passed without observance of fair procedure and without notice-compliant enquiry. As the disputed coils formed part of one consignment and similar goods had already been released on conditions by the Kerala High Court, the Court found it to grant corresponding relief for the remaining coils, while leaving the customs authority free to proceed according to law.

Conclusion: The confiscation order was quashed for violation of the principles of natural justice, the matter was remitted to the customs authority, and release of the goods was directed subject to payment of duty, deposit of part of the differential duty, furnishing of bank guarantee, and security.

Final Conclusion: The petition succeeded in part by setting aside the confiscation and securing conditional release of the goods, while preserving the authority's power to continue proceedings in accordance with law.

Ratio Decidendi: An adjudication affecting confiscation of goods cannot be sustained unless the affected party is given due notice and a real opportunity of hearing; where such opportunity is not established, the order is liable to be quashed and appropriate consequential relief may be granted.

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