Procedural fairness in drawback recovery proceedings requires a hearing and consideration of reply before confirming demand.

A demand order confirming drawback recovery was set aside because it was passed without a meaningful opportunity of hearing and without properly dealing with the petitioner's reply. The petitioner had claimed to have furnished bank realisation certificates, negative statements and other export records, but the impugned order did not address those materials. The HC held that such procedural infirmity justified interference and remand. The matter was sent back for fresh adjudication on merits after giving the petitioner an opportunity to produce the relevant shipping bill-wise particulars and supporting documents, with liberty to proceed on the available record if cooperation was not forthcoming.

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Issues: Whether the demand order confirming drawback recovery against the petitioner, without proper consideration of the petitioner's reply and hearing, warranted interference and remand for fresh adjudication.

Analysis: The petitioner asserted that bank realization certificates and negative statements had already been furnished in response to earlier notices, while the impugned order did not clearly deal with that reply. The respondent also acknowledged that the petitioner was not heard before the order was passed. In these circumstances, the order suffered from a procedural infirmity and required reconsideration after giving the petitioner an opportunity to place the relevant export documents and shipping bill-wise particulars.

Conclusion: The impugned order was set aside and the matter was remitted to the respondent for a fresh decision on merits after affording an opportunity of hearing. The petitioner was directed to cooperate and furnish the requisite documents, failing which the respondent was at liberty to proceed on the available materials.

Ratio Decidendi: An adjudication confirming demand without affording a meaningful opportunity of hearing and without dealing with the relevant reply is liable to be set aside and remitted for fresh consideration.

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