Natural justice in customs valuation fails where relied-upon evidence is withheld and rebuttal is denied.

Confiscation and valuation could not be sustained where the assessee was not confronted with the material used to enhance value and was denied a fair opportunity to rebut it. The enhancement rested on undisclosed documents treated as fresh evidence, so the adjudication was vitiated for breach of natural justice. The order was set aside and the matter remanded for fresh adjudication after supplying the relied-upon evidence and granting a personal hearing.

---

---

Issues: Whether the confiscation and valuation order could be sustained when the assessee was not confronted with the material relied upon for enhancement of value and was denied a fair opportunity of rebuttal.

Analysis: The appellant had waived issue of show cause notice and sought personal hearing, but the valuation was enhanced on the basis of material that was not disclosed to it. The additional documents placed in the paper book were also treated as fresh evidence, and the record showed that the assessee was not confronted with the evidence relied upon for the enhanced valuation. In such circumstances, fair play required that the material used against the assessee be supplied and an opportunity to meet it be given before final adjudication.

Conclusion: The order was vitiated by denial of natural justice and was set aside. The matter was remanded for fresh adjudication after supplying the relied-upon evidence and granting personal hearing.

---