Natural justice in duty drawback matters requires consideration of Bank Realization Certificates before cancelling drawback and ordering recovery.

Cancellation of duty drawback under Section 75 of the Customs Act was set aside because the Customs authority failed to consider Bank Realization Certificates and other material submissions before directing recovery. The court treated this omission as a breach of natural justice and a defect in the decision-making process, even though the petitioner did not appear at the later personal hearing. The impugned order was quashed and the matter remitted for fresh adjudication on merits after hearing the petitioner and considering the additional reply and documents.

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Issues: Whether the impugned order cancelling the duty drawback and directing recovery was liable to be quashed for breach of natural justice due to non-consideration of the Bank Realization Certificates and the matter remitted for fresh adjudication.

Analysis: The petitioner had claimed duty drawback under Section 75 of the Customs Act, 1962. The record showed that Bank Realization Certificates were stated to have been furnished and acknowledged by the Customs Department, but the impugned order did not consider them before proceeding to cancel the drawback and seek recovery. Even if there was non-appearance at the later personal hearing, the omission to examine a material submission and document vitiated the decision-making process.

Conclusion: The impugned order was quashed and the matter was remitted to the first respondent to pass a fresh order on merits after hearing the petitioner and considering the additional reply and documents.

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