Natural justice bars withdrawal of a granted fiscal facility without prior hearing where civil consequences follow.

A fiscal benefit already granted under a Chapter X notification could not be withdrawn to the prejudice of the affected party without prior hearing, because the withdrawal had civil consequences and had to comply with natural justice. The High Court found that the impugned order did not disclose that the petitioners had been given an opportunity to be heard before the facility in relation to ball-bearings and roller-bearings was taken away. The withdrawal order was therefore quashed, and reconsideration was permitted only after affording the petitioners a hearing.

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Issues: Whether the order withdrawing the facility under Chapter X could be sustained without giving the petitioners an opportunity of being heard.

Analysis: The petitioners had earlier been extended the Chapter X facility in relation to ball-bearings and roller-bearings under Notification No. 64/86 dated 10-2-1986. The impugned order withdrawing that facility did not show that any hearing had been given before taking the adverse decision. Where a benefit already extended is sought to be withdrawn, the affected party must be heard before the order is passed.

Conclusion: The withdrawal order was quashed for breach of natural justice, and the matter could be reconsidered only after giving the petitioners an opportunity of hearing.

Ratio Decidendi: A benefit or facility granted under a fiscal notification cannot be withdrawn to the prejudice of the affected party without complying with the requirement of prior hearing when the decision has civil consequences.

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