Natural justice and customs exemption withdrawal upheld where notices were served and the beneficiary failed to show compliance.

Withdrawal of a customs exemption certificate under Notification No. 64/88-Cus. was upheld where the beneficiary had been given notices and reminders to demonstrate compliance with the post-import conditions but failed to respond properly. The Court found no breach of natural justice because the reply relied on was sent to a different authority and did not answer the notices issued by the competent authority. The refusal to review the withdrawal was also sustained on the basis of the factual report and the applicable legal position, with no illegality shown in either decision.

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Issues: Whether the withdrawal of the certificate enabling the petitioner to claim customs exemption under Notification No. 64/88-Cus. and the subsequent refusal to review that withdrawal were vitiated for violation of natural justice or any other illegality.

Analysis: The petitioner had been issued notices and reminders calling upon it to show compliance with the post-import conditions attached to the exemption. The reply relied upon by the petitioner was addressed to a different authority and did not constitute a response to the notices issued by the Directorate General of Health Services. On the materials before the Court, the petitioner had been given ample opportunity to satisfy the authorities regarding fulfilment of the conditions, but failed to do so. The refusal to review the earlier withdrawal order was also supported by the factual report of the State authorities and the legal position noticed by the respondent.

Conclusion: The Court held that there was no violation of the principles of natural justice and no illegality in either the withdrawal of the exemption certificate or the refusal to review it.

Ratio Decidendi: Where notice and opportunity to comply with the conditions of an exemption have been given, a withdrawal of the benefit is not invalid for breach of natural justice merely because the recipient failed to respond to the notices or sent an unrelated reply to another authority.

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