Natural justice governs withdrawal of drawback benefits, requiring notice, hearing and a speaking order before refund demands are made.

Withdrawal of an already granted drawback benefit and a consequential refund demand cannot be sustained without prior notice and a fair hearing, because such withdrawal carries civil consequences and must comply with natural justice. The assessee's representation had also remained undecided. On that basis, the impugned orders were quashed and the matter was remanded to the competent authority for fresh decision after considering objections and passing a speaking order.

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Issues: Whether the withdrawal of drawback benefits and consequential demand for refund could be sustained without issuing notice and granting an opportunity of hearing to the assessee.

Analysis: The benefit had earlier been extended to the assessee on the basis of the applicable circulars and related verification. The impugned demand for refund was issued without any show cause notice or hearing, and the absence of prior opportunity was not denied. Since withdrawal of an already granted benefit entails civil consequences, the matter had to be decided consistently with the principles of natural justice. The assessee's representation also remained undisposed of.

Conclusion: The impugned orders were not sustainable and were quashed. The matter was remanded to the competent authority to decide afresh after receiving objections and passing a speaking order.

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