Natural justice in duty drawback adjudication required remand after only one hearing and denial of full opportunity to produce documents.

Duty drawback adjudication was set aside where the assessee had been given only one personal hearing and claimed that relevant Bank Realization Certificates and supporting documents were available. The Court held that fair opportunity and principles of natural justice required the matter to be reopened, so the adverse order was quashed and the case remanded to the same authority for fresh consideration after permitting production of the documents.

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Issues: Whether the impugned order confirming the duty drawback demand was liable to be quashed for violation of principles of natural justice, and whether the matter should be remanded for fresh adjudication after granting further opportunity to produce Bank Realization Certificates and other documents.

Analysis: The demand arose from alleged non-compliance with Rule 16A of the Customs, Central Excise & Service Tax Drawback Rules, 1995 read with the proviso to Section 75(1) of the Customs Act, 1962. The petitioner asserted that the relevant Bank Realization Certificates for the export period were available and that only one personal hearing had been granted before the adverse order. The record disclosed that only a single hearing had been afforded. In view of the claim that the supporting documents were available and the requirement of fair opportunity in adjudication, the petitioner was entitled to one more opportunity to place the materials before the authority.

Conclusion: The impugned order was quashed and the matter was remanded to the same authority for fresh consideration after affording an opportunity to produce the relevant documents and after following the principles of natural justice.

Ratio Decidendi: Where an adjudication affecting duty drawback liability is passed after only one opportunity of hearing, and the assessee asserts availability of material documents supporting its defence, the order is liable to be set aside and the matter remitted for fresh decision after due opportunity.

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