Procedural fairness in customs adjudication failed when confiscation and penalty rested on undisclosed material not put to notice.

Confiscation and penalty could not be sustained where the adjudicating authority relied on statements and account books that were neither disclosed to the appellant nor referred to in the show cause notices. Because the adverse findings were based entirely on material not made available for rebuttal, the proceedings were vitiated by breach of procedural fairness and the resulting order was liable to be set aside.

---

---

Issues: Whether the confiscation of cotton fabrics and penalty could be sustained when the adjudicating authority relied on statements and account books not disclosed to the appellant or referred to in the show cause notices.

Analysis: The order of confiscation and penalty was founded on material that had not been made available to the appellant and had not been put to notice in the proceedings. Since the adverse findings rested entirely on such undisclosed material, the adjudication was vitiated by breach of procedural fairness.

Conclusion: The confiscation and penalty could not be sustained and were liable to be set aside.

---