Natural justice bars withdrawal of an eligibility certificate under customs exemption without notice or hearing.

Withdrawal of an eligibility certificate enabling import under Customs exemption Notification No. 64/88-Cus. was held invalid because the authority cancelled it without issuing a show cause notice or giving the affected party a reasonable opportunity of hearing. The certificate had been acted upon to claim the exemption, and the later adverse action required compliance with natural justice before any cancellation could take effect. In the absence of such procedural fairness, the withdrawal could not stand and was set aside in favour of the petitioner.

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Issues: Whether the withdrawal of the eligibility certificate under Customs exemption Notification No. 64/88-Cus. without issuing a show cause notice and without affording an opportunity of hearing was valid.

Analysis: The certificate had enabled import of machinery under the exemption notification, and the authority later withdrew it on the view that the conditions of the notification had not been complied with. Since the impugned action adversely affected the petitioner, the authority was required to put the petitioner on notice and give a reasonable opportunity of being heard before cancelling the certificate. In the absence of such procedure, the decision violated the settled requirement that no adverse order be passed without compliance with natural justice.

Conclusion: The withdrawal order was invalid for breach of natural justice and was set aside in favour of the petitioner.

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