Rule 57E certificate cannot be withdrawn without natural justice; later amendment was not retrospective and benefit was retained.

Rule 57E certificate could not be withdrawn without observance of natural justice, and the later amendment was not shown to operate retrospectively. The assessee had paid duty before the show cause notice, and the Range Officer issued the certificate after verification on the same day as the application. The Revenue's reliance on alleged clandestine removal and suppression failed because the departmental authorities were already aware of the assessee's operations and had themselves granted the certificate. The certificate therefore remained valid and the assessee was entitled to retain its benefit.

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Issues: Whether the Revenue was justified in withdrawing the Rule 57E certificate and in contending that the later amendment to Rule 57E applied retrospectively so as to deny the certificate on the ground of alleged clandestine removal and suppression of facts.

Analysis: The assessee had paid the duty before issuance of the show cause notice and the Range Officer had issued the certificate on the same day as the application. The subsequent withdrawal of the certificate was found to have been made without observance of natural justice. The amendment relied upon by the Revenue was expressly stated to operate with immediate effect, which did not support retrospective operation. The allegation of clandestine removal and suppression was also rejected, as the departmental authorities were aware of the assessee's operations and had themselves issued the certificate after verification.

Conclusion: The Revenue's challenge failed; the certificate could not be withdrawn on the grounds urged, and the assessee was entitled to retain the benefit of the certificate.

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